Amid Surging Collections, Discos Exceed 2024 Revenue, Set to Smash N2.3tn Mark

Emmanuel Addeh in Abuja

Nigeria’s electricity Distribution Companies (Discos) experienced their most dramatic financial upturn in the first three quarters of 2025, with new regulatory data showing that by the end of September 2025, the Discos already hauled in over N1.71 trillion, effectively matching and exceeding their total revenue of N1.7 trillion for the entire 2024 financial year.

With the surging collection coming three months ahead of schedule, a THISDAY projection showed that given an average monthly revenue of roughly N200 billion, the power distributors may be on their way to raking in as much as N2.3 trillion this year, an increase of over 35.2 per cent compared to 2024.

A review of figures from the Nigerian Electricity Regulatory Commission (NERC) revealed that between January and September 2025, the Discos generated N1.713 trillion, underscoring how steep the collections have been, despite the fact that the revenue increase has not matched with expected service improvement.

According to the analysis, revenue in January 2025 climbed to N178.68 billion, nearly 88 per cent higher than the N95 billion collected in January 2024. February’s N191.75 billion represented almost a 98 per cent jump from the N97 billion recorded a year earlier. March collections of N188.89 billion were almost 88 per cent higher than the N100.44 billion generated in March 2024.

The upward trajectory continued through the second quarter, as April 2025 yielded N199.85 billion, compared to N142.92 billion in April 2024, an increase of 40 per cent. May’s N191.57 billion exceeded the N139.23 billion collected in May 2024 by about 38 per cent, while June revenue of N182.11 billion surpassed the N150.86 billion posted in June 2024 by roughly 21 per cent.

Momentum strengthened further during the third quarter, as the Discos took in N193.96 billion in July 2025, followed by N191.11 billion in August. In 2024, July and August receipts were N162.14 billion and N168.7 billion respectively. The July improvement came to about 20 per cent, while August collections rose by roughly 13 per cent compared with the previous year.

With the addition of N196.26 billion in September 2025, the distributors crossed the symbolic N1.7 trillion threshold, the data revealed.

Taken together, the performance marked the strongest nominal revenue growth the distribution segment has recorded since privatisation began in 2013. For a sector long characterised by persistent cash shortfalls, weak operational discipline, and customer dissatisfaction, the figures represent a remarkable shift.

The analysis showed that a major catalyst was the tariff adjustment implemented in April 2024, which significantly raised the rates paid by Band ‘A’ customers, those guaranteed at least 20 hours of supply daily. The revised tariff regime has been a decisive factor in the financial upswing.

Before the adjustment, the Discos routinely sold power below the cost of procurement from the Nigerian Bulk Electricity Trading company (NBET), deepening liquidity deficits along the value chain. But the regulators argued that the higher rates were necessary to shore up a system where cost-reflective pricing had been elusive for years.

Besides, although still far from satisfactory, metering has also played a critical role in improved Discos’ collection. Recent sector reports indicate that over 800,000 new meters were deployed through the Meter Asset Provider (MAP) scheme and the National Mass Metering Programme (NMMP).

Alongside metering, the growing adoption of digital payment and vending platforms has modernised the revenue cycle. Several Discos have upgraded their electronic collection systems, enabling customers to recharge remotely, track consumption, and resolve billing concerns with fewer delays.

The shift away from manual processes has curtailed the leakages and fraud historically associated with physical cash handling, introducing real-time visibility into financial inflows.

These structural improvements have begun to erode Aggregate Technical, Commercial and Collection (ATC&C) losses, one of the most crippling weaknesses of the power distribution segment.

Last month, the federal government faulted the Discos for failing to invest adequately in critical infrastructure despite the huge revenue generation, stressing that although recent reforms had significantly strengthened the financial position of the  companies, they had not matched rising revenue with the level of investment required.

Minister of Power, Adebayo Adelabu said the Discos’ earnings had risen significantly within two years as a result of policy adjustments introduced by the current administration, including tariff restructuring and steps toward a more commercially driven market.

However, he stressed that while revenues have surged, the operators have “failed to reinvest adequately in infrastructure, technical manpower, and customer metering”, and warned that the financial health of the distributors had become a major barrier to the overall stability of the electricity value chain.