Discos’ Half Year Revenue Rises 55.8% Amid Higher Tariff, More Metering

Emmanuel Addeh in Abuja 

Electricity Distribution Companies (Discos) in Nigeria recorded a dramatic surge in revenue collection in the first half of 2025, rising by 55.8 per cent compared to the previous year.

This is according to a THISDAY analysis of data from the Nigerian Electricity Regulatory Commission (NERC), with the result reflecting a combination of tariff adjustments, stepped-up metering, and intensified enforcement of payment discipline across the power sector. 

The Discos collectively raked in a total of about N1.13 trillion in the first half of this year, compared to N725.45 billion in the six months to June 2024,  representing an over 55 per cent per cent increase.

The turnaround marked one of the strongest half-year performances for the distribution segment since Nigeria began the power sector reforms over a decade ago, specifically in 2013 when the sector was privatised.

For years, Discos struggled with weak collections, mounting debts to the Transmission Company of Nigeria (TCN) and the Generation Companies (Gencos), as well as chronic customer dissatisfaction over poor supply. But the latest figures suggest that recent policy shifts are beginning to translate into stronger financial flows across the electricity value chain.

The upward adjustment in electricity tariffs, approved in April 2024, has been a key factor underpinning the revenue surge. Under the new Multi-Year Tariff Order (MYTO), certain customer bands are now charged cost-reflective levels, particularly those in Band ‘A’ who enjoy a minimum of 20 hours of power supply daily.
Before the adjustment, many Discos lamented that they were forced to sell electricity below the cost of procurement from the bulk trader, deepening liquidity shortfalls. NERC has argued that new tariffs, though a difficult decision, were necessary to sustain investment, attract financing, and guarantee more reliable supply.

A further breakdown of the total revenue for the first half of 2025 showed that the Discos posted a total revenue of N178.68 billion in January; N191.75 billion in February; N188.89 billion in March; N199.85 billion in April; N191.57 billion in May and N182.11 billion in June 2025, to hit the N1.13 trillion mark.
The total revenue in the period is higher than the N725.4 billion generated in the first six months of 2024 by the distribution companies. Broken down, it showed that N95 billion was generated in January out of N130.92bn billed for the month.

Similarly, the sum of N97 billion was collected in February out of projected N113 billion, N100.44 billiin was generated in March out of N126.56 billion billed, N142.92 billion was made in April out of N178.72 billion, and N139.23 billion was generated in May out of N191.65 billion billed for the month. In June, the revenue increased to N150.86 billion out of an estimated billing of N176.57 billion to hit N725.45 billion.

Besides, checks showed that the power distribution firms in Nigeria’s Electricity Supply Industry (NESI) amassed N514.95 billion in revenue in the first half of 2023, representing the highest collection recorded at the time. 

Compared with the 2025 half year data, the collection from January to June in 2024 was less than half of the amount received by the companies in the same period this year, marking a significant milestone and underscoring the evolving dynamics within the country’s power distribution landscape.
In the same vein, the payment of previously unpaid bills by electricity users in Nigeria in the first half of 2022 pushed revenue generated by distribution companies in the country to the highest level in eight years at the time.

The Discos generated N393.15 billion in revenue in the first half of 2022, up 6.15 per  cent from N368.97 billion reported in the first half of 2021, data from the National Bureau of Statistics (NBS) also showed.

This is just as electricity consumers hooked on to the national grid paid N831 billion to the Discos that was sent to their homes and offices between the two years between 2017 and 2019.

In all, the rapid rollout of meters under both government-backed schemes and private financing initiatives has also helped plug leakages. Although there is still heavy reliance on estimated billing, which often lead to disputes, underpayment, and outright rejection of bills,  the recent metering penetration has also improved collection.

According to sector reports, more than 800,000 new meters were deployed in recent times under the Meter Asset Provider (MAP) framework, alongside accelerated installation through the National Mass Metering Programme (NMMP). This has reduced the number of unmetered customers significantly, cutting revenue losses tied to unbilled consumption.

Additionally, some Discos have invested in digital payment platforms and mobile applications, making it easier for customers to recharge, track usage, and resolve disputes. The use of electronic vending channels has minimised leakages associated with manual collection and improved real-time monitoring of cash flows.

However, despite the strong growth in revenue, concerns remain about affordability and service quality. Many households and small businesses continue to complain that the tariff hike is biting into disposable income at a time of high inflation and economic pressure. 

For customers outside Band A, electricity supply remains erratic, with outages still common in parts of the country.

Despite the rise in tariff for a section of power consumers, the Minister of Power, Adebayo Adelabu, has recently maintained that the current subsidy regime in the sector was not sustainable, noting that raising prices was inevitable.