Nigeria's Power Sector Faces N1.36tn Revenue Shortfall

The Nigerian electricity sector faced a revenue shortfall of approximately N1.36 trillion in 2025, as reported by the Nigerian Electricity Regulatory Commission (NERC). Power distribution companies (DisCos) failed to bill consumers for N694.8 billion worth of electricity and did not collect N669.5 billion from already issued bills.

The DisCos supplied electricity valued at N3.68 trillion but billed only N2.99 trillion, achieving a gross billing efficiency of 81.14 percent. Of the billed amount, only N2.32 trillion was collected, resulting in a collection efficiency of 77.60 percent.

The report indicated that the weighted average aggregate technical, commercial, and collection loss across the DisCos was 37.03 percent, significantly above the 20.54 percent target. Ben Murray-Bruce criticized the 2013 privatization, claiming it was a mere transfer of custody without the necessary investment to improve the sector.

He highlighted that millions of customers remain unmetered, leading to reliance on estimated billing.