• DisCos collect ₦564.71 billion revenue; International customers pay $9.01m

The Nigerian Electricity Regulatory Commission (NERC) has said the cost of Federal Government electricity subsidy reduced to N514.35 billion in the second quarter of 2025 (Q2 2025) from the N536.40 paid in the Q1 2025. The decline was by 4.11 per cent, according to the commission’s Q3 Report.
The payment of subsidy, the report noted, was incurred due to lack of a cost-reflective tariff.
NERC said, “The total amount invoiced by the GenCos for energy delivered to each DisCo and the DRO- adjusted NBET invoice to the respective DisCos during 2025/Q2.
“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the Government incurred a subsidy obligation of ₦514.35 billion 21; this represents a ₦22.04 billion (-4.11 per cent) reduction in FGN subsidy compared to 2025/Q1 (₦536.40 billion).”
The report also noted that although the subsidy obligation of the government decreased in naira terms (-₦22.04 billion), it accounted for 59.60 per cent of the total GenCo invoice, which is a
0.44pp increase compared to 2025/Q1 when subsidy accounted for 59.16 per cent of the total GenCo invoice.
NERC said this is because the actual generation cost (₦/kWh) increased by 0.59 per cent, while the allowed end-user tariffs remained unchanged across the quarters.
According to the report, the total revenue collected by all DisCos in 2025/Q2 was ₦564.71 billion out of the ₦742.34 billion that was billed to customers.
This, said NERC, translates to a collection efficiency of 76.07 per cent.
In comparison, the report said, the total revenue collected by all DisCos in 2025/Q1 was ₦553.63 billion out of the ₦744.26 billion billed to customers, which translated to a 74.39 per cent collection efficiency.
This means that at an aggregate level, DisCos recorded a 1.68pp increase in collection efficiency between 2025/Q1 and 2025/Q2, according to the report.
NERC revealed that in 2025/Q2, three DisCos recorded collection efficiencies greater than 80 per cent with Eko (87.80 per cent) recording the highest collection efficiency.
Conversely, it said Jos DisCo recorded the lowest collection efficiency at 43.82 per cent .
It added that on there other hand, the remaining five DisCos recorded declines in collection efficiency, with Abuja (-3.93pp) and Jos (-3.37pp) DisCos having the most significant declines
across the quarters.
NERC explained that the Market Operator issues invoices to DisCos for energy transmission and administrative services.
The report said the period under review, DisCos made a total remittance of ₦65.30 billion against the cumulative invoice of ₦68.68 billion issued by the MO.
This payment, according to the report, translates to 95.07 per cent remittance performance and is a 1.25pp decrease
when compared to 96.32 per cent remittance performance recorded in 2025/Q1 when DisCos remitted ₦59.49 billion out of ₦61.76 billion invoice issued by the MO.
On the remittances made by bilateral customers (domestic and international) and special customers for invoices issued in 2025/Q2 by the MO, NERC noted they are the six international bilateral customers being supplied by GenCos in the NESI made a payment of $9.01 million against the cumulative invoice of $17.54 million issued by the MO for services rendered in 2025/Q2, translating to a remittance performance of 51.33 per cent .
It also said the domestic bilateral customers made a cumulative payment of ₦1.401.00 billion against the invoice of ₦2.796.29 billion issued to them by the MO for services rendered in 2025/Q2, translating to 50.10 per cent remittance performance.
The report explained that one domestic bilateral customer made payments during 2025/Q2 for outstanding MO invoices from previous quarters.
NERC said the MO received ₦10.53 million from Trans-Amadi (OAU/FMPI) towards outstanding invoices from previous quarters.
Meanwhile, it said the special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ₦1.27 billion (NBET) and ₦0.12 billion (MO) invoices received in 2025/Q2.
It explained that this continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant FGN authorities.

The Eko Electricity Distribution Company Plc (Eko DisCo) has officially registered Excel Electricity Distribution Company Limited as a 100 per cent subsidiary to take over the operations of its electricity distribution business in Lagos State. This is in compliance with Lagos State Government regulatory requirements.
Following the granting of electricity regulatory powers to the states, the Lagos State Electricity Regulatory Commission (LASERC) required Eko DisCo, which operates in two states- Lagos and Ogun States, to register a separate entity for its Lagos State operations. Eko DisCo therefore registered its subsidiary, Excel Electricity Distribution Limited to operate its distribution business under the regulatory oversight of LASERC and Nigeria Electricity Regulatory Commission (NERC).
The EKEDC has subsequently transmuted into a holding company- a structural change in regulatory compliance following the enactment of the Electricity Act (EA) 2023 which devolved regulatory oversight of the electricity market to state governments.
In a statement signed by the EKEDC management yesterday, the utility assured that the development will not impair its operations in the State.
“Management hereby reiterates that Eko Electricity Distribution Company Plc remains a key player and investor in the Lagos electricity ecosystem, committed to delivering reliable, efficient, and sustainable power supply to all customers through Excel Disco. The recent licensing developments represent a regulatory and structural transition, not a takeover or divestment. This clarification became necessary in the interest of factual accuracy and public understanding of important developments in the electricity sector,” the statement said.
It further explained that the newly licensed Excel Electricity Distribution Limited is a 100 per cent subsidiary of EKEDC and will perform all the electricity distribution activities previously done by EKEDC under EKO DISCO. Furthermore, the EKEDC advised all customers of Excel DisCo will continue to be served by the same personnel who served them in EKO DISCO and urged them to pay their bills in the same way they have been paying.
“They will notice the name change as we transition the name from EKODISCO to Excel Disco. For now, they should continue to contact the same personnel they normally contact for all their service needs and customer requests,” it advised its customers.
The management was emphatic that the new arrangement does not translate to the sale or takeover of EKEDC, as it remains a legally recognised and operational entity duly incorporated under Nigerian law.
There has been no sale, transfer of ownership, or dissolution of the company. EKEDC also known as Eko DisCo continues to exist as a legal entity, with 60 per cent shareholding retained by West Power and Gas Limited (WPG) — the core investor and the BPE which is holding the balance 40 per cent shareholding on behalf of the Federal government of Nigeria. The company continues to operate under full compliance with good corporate governance and regulatory frameworks,” the management said.

Nigeria’s power generation companies (GenCos) have raised alarm over the worsening state of the electricity sector, cautioning that without urgent reforms, the industry risks deeper deterioration with dire implications for economic growth, investor confidence, and national development.
In a goodwill message marking Nigeria’s 65th Independence anniversary, the Association of Power Generation Companies (APGC) described the generation segment of the electricity value chain as being at a “critical crossroads” due to rising debts, liquidity constraints, and operational bottlenecks.
Chief Executive Officer of the APGC, Joy Ogaji, who signed the statement, said debts owed to GenCos have now surpassed ₦5 trillion, largely on account of unsettled subsidy payments that cost the Federal Government more than ₦200 billion monthly. She warned that “patriotism alone cannot sustain the operators,” particularly as gas suppliers increasingly divert output away from power plants.
“Without urgent, coordinated and sustained action, the sector risks further deterioration, a situation that would have far-reaching implications for national development, economic stability, and investor confidence,” Ogaji cautioned.
While acknowledging recent interventions to address market liquidity and stimulate private investment, the GenCos stressed that such gains could be quickly reversed.
“At 65, the reality is that the generation segment of the power value chain stands at critical crossroads. GenCos are under enormous financial and operational pressure,” the Association said.
The APGC also denied viral claims on social media that the Federal Government had approved a ₦4 trillion debt refinancing plan to clear arrears owed to 27 power generation companies between 2015 and 2023. It maintained that no such approval had been communicated- a development analysts say highlights the persistent lack of clarity in the sector.
Nigeria, despite having an installed capacity of over 13,000 megawatts, continues to generate between 3,500MW and 5,000MW, constrained by poor transmission infrastructure, gas shortages, and liquidity shortfalls. Since the 2013 privatisation exercise, the sector has remained hampered by financial illiquidity, cost-reflective tariff gaps and regulatory uncertainty.
The APGC reiterated that outstanding debts, estimated at ₦5.6 trillion as of last month, pose a grave threat to the survival of operators. It argued that failure to settle obligations, incentivise gas supply, and expand transmi8ssion investment could trigger sector-wide collapse.
“The progress made so far risks reversal if liquidity challenges are not resolved, if investments are not incentivised and if tariffs do not reflect the true cost of power,” Ogaji stated, adding that electricity supply remains vital to industrial growth, job creation and poverty reduction.
The Association commended Nigerians’ resilience, noting that the Independence anniversary should serve as a reminder of the need to transform the power sector into an engine of sustainable development.
“Unless bold steps are taken to resolve liquidity challenges, incentivise investment, and guarantee cost-reflective tariffs, the dream of a stable power supply will remain elusive, even as the country moves closer to its seventh decade of nationhood,” the statement concluded.