The Distribution Companies of Nigeria, DISCOs, recorded 16.5 per cent, year-on-year YoY increase in revenue to N193.96 billion in July 2025 from N162 billion in the corresponding period of 2024.
The increase in revenue is amidst complain of poor power supply by many consumers including homes and businesses due to alleged inefficiency of the DISCOs and inability of the Transmission Company of Nigeria to wheel around 16,384 MW installed power generation capacity from the Generation companies, GENCOs.
In its latest report obtained by Vanguard, the Nigerian Electricity Regulatory Commission, NERC, disclosed that total revenue collected by the DISCOs stood at N193.96 billion even as the government continues to subsidise power supply.
According to the report, the total value for energy received stood at N300.04 billion, leaving energy billed and actual average collection per kilowatts, KWh at N243.14 billion and N89.30, respectively.
Also, it noted that this translated to 81.04 per cent, 79.77 per cent and 76.82 per cent billing efficiency, collection efficiency and recovery efficiency, respectively.
Reacting to the development, Adetayo Adegbemle, Convener and Executive Director of PowerUp Nigeria, a power consumer advocacy group, lamented the nation’s poor power supply and called for an end to electricity subsidies.
He explained: “Historically, the Nigerian government has paid electricity subsidies to the Nigerian Electricity Supply Industry (NESI). This means there is a cost-reflective tariff for supplying 1kWh (kilowatt-hour) and an allowed tariff that consumers are permitted to pay.
“This variance, otherwise called a ‘subsidy,’ has now turned into an elephant in a china shop. It stems from government welfare policies intended to support consumers who cannot afford the true cost of power.”
He added that although subsidies aim to maintain economic stability and prevent social unrest, they have become a huge burden on government finances. Between 2015 and 2020, tariff shortfalls reportedly reached N2.4 trillion, averaging N200 billion yearly, while in 2022 alone, over N600 billion was paid. The figure was projected to hit N1 trillion in 2024.
Adegbemle noted that under the 2022 Multi-Year Tariff Order (MYTO), the cost-reflective tariff averaged N68.42/kWh, while the allowed tariff was N59.89/kWh, with the Federal Government covering N8.53/kWh as subsidy. Between January and March 2023 alone, subsidies totaling N52.7 billion were paid to the 11 DisCos.
