- DISCOs’ revenue rose by 16.5% year-on-year to ₦193.96 billion in July 2025.
- Experts urge the removal of electricity subsidies as power supply remains unstable nationwide.
Nigeria’s power sector continues to stir debate. The Distribution Companies (DisCos) recorded a sharp 16.5% revenue rise despite widespread complaints about erratic electricity supply.
The Nigerian Electricity Regulatory Commission (NERC) reported that total revenue collected by the DisCos reached ₦193.96 billion in July 2025. This marked an increase from ₦162 billion recorded in the same period of 2024.
The report showed that while the government still funds the electricity subsidy, many homes and businesses suffer frequent power outages. NERC stated that the total value of energy received stood at ₦300.04 billion. Energy billed reached ₦243.14 billion, while the average collection per kilowatt-hour (kWh) was ₦89.30.
It added that billing efficiency stood at 81.04%, collection efficiency at 79.77%, and recovery efficiency at 76.82%. These figures indicate that although revenue rises, service quality remains poor for consumers.
Adetayo Adegbemle, Executive Director of PowerUp Nigeria, criticised inefficiency across the power sector. He described the electricity subsidy policy as unsustainable and called for its gradual removal. He explained that the subsidy protected low-income consumers from cost-reflective tariffs. However, it has now become a heavy burden on national finances.
Between 2015 and 2020, Nigeria’s tariff shortfalls reportedly reached ₦2.4 trillion, averaging ₦200 billion yearly. In 2022 alone, subsidy payments totalled ₦600 billion, and projections show they could hit ₦1 trillion in 2024. Adegbemle warned that such spending discourages private investment and slows infrastructure development.
Under the 2022 Multi-Year Tariff Order (MYTO), the cost-reflective tariff averaged ₦68.42/kWh, while consumers paid ₦59.89/kWh. The government covered the ₦8.53/kWh gap as a subsidy, spending ₦52.7 billion on the 11 DISCOs between January and March 2023.
Experts insist that ending electricity subsidies could attract new investors and promote efficiency across the power sector. Yet, many Nigerians worry that higher tariffs may follow if power supply fails to improve first.