- Experts argue that rising revenue reflects unfair billing practices.
- NERC maintains that growth comes from stronger efficiency and recovery.
Nigeria’s electricity revenue surge continues to spark intense debate across the country, and the latest revenue report has drawn strong reactions. The Nigerian Electricity Regulatory Commission (NERC) insists the rise stems from improved efficiency. Nigeria’s electricity revenue surge, however, has led many experts to argue that customers now suffer unfair charges. Due to these contrasting views, public concern continues to intensify.
NERC and sector analysts have taken opposing positions on the source of the rising revenue. While NERC highlights better billing and stronger collection systems, experts claim the growth reflects customer exploitation. They argue that many households now pay for electricity they never receive. As a result, distrust continues to grow between consumers and operators.
From January to September 2025, the electricity Distribution Companies (DisCos) recorded N1.713 trillion in revenue. This marked a 27 per cent increase from the same period in 2024. During September alone, revenue reached N196.26 billion out of a total of N241.54 billion billed. Although this shows strong inflow, it still leaves N49.28 billion unpaid.
The quarterly trend also shows steady growth. DisCos collected N559.3 billion in Q1 2025, N573.5 billion in Q2 2025, and N581.3 billion in Q3 2025. According to NERC, billing efficiency rose to 86.43 per cent, while revenue collection efficiency reached 81.25 per cent. NERC believes liquidity in the sector will strengthen as a result of this performance.
Some DisCos, including Eko, Abuja, and Ikeja Electric, posted strong efficiency across billing and recovery. Aba even achieved 102.85 per cent billing efficiency due to improved energy optimisation. Others, such as Jos, Kaduna, and Yola, showed lower performance and need improvement.
Despite NERC’s confidence, many experts remain unconvinced. According to energy economist Professor Wumi Iledare, the flawed pricing structure drives the revenue rise. He argues that estimated billing punishes low-income households, adding that Band Pricing creates distortions, thereby compromising fairness and effectiveness.
Another operator, speaking anonymously, believes NERC has failed to protect consumers. He claims that the regulator has not enforced proper standards in over a decade. Because of this regulatory gap, he believes sector inefficiencies continue unchecked.
Consumer advocates also raise concerns. Adetayo Adegbemle of PowerUp Nigeria stresses that electricity subsidies are unsustainable. He explains that the gap between actual supply costs and approved tariffs has become a major burden. He adds that the government planned to phase out subsidies since 2020 due to mounting financial pressure.
Experts agree that pricing reforms remain necessary. They also insist that consumers deserve fair value. As Nigeria pushes for a stable energy future, trust, transparency, and accountability must guide the sector.