Nigeria’s 11 electricity distribution companies left electricity worth N2.47tn unbilled between 2020 and 2025, amid meter bypass, electricity theft, poor customer enumeration and technical losses.
The analysis of annual reports by the Nigerian Electricity Regulatory Commission showed that the billing gap rose from N281.86bn in 2020 to a record N622.31bn in 2025, representing a 120.8 per cent increase.
The development highlights the widening naira value of electricity that DisCos were unable to capture through their billing systems despite an improvement in billing efficiency in percentage terms.
In 2020, the DisCos received electricity valued at N1.098tn but billed N816.16bn, leaving N281.86bn unbilled.
The gap rose to N341.77bn in 2021, when electricity worth N1.459tn was received and N1.117tn billed.
In 2022, the companies received N1.544tn worth of electricity and billed N1.185tn, leaving N358.26bn unbilled.
The figure increased further to N384.05bn in 2023, as electricity received rose to N1.847tn while billing stood at N1.463tn.
The sharpest increases were recorded in 2024 and 2025.
In 2024, electricity worth N2.675tn was received, while N2.197tn was billed, leaving a gap of N478.29bn.
The gap climbed by N144.02bn to N622.31bn in 2025, when the DisCos received electricity worth N3.611tn but billed N2.988tn.
According to NERC, the 2025 gap represented 17.23 per cent of the value of electricity received, compared with 25.67 per cent in 2020.
The regulator defines billing efficiency as the ratio of electricity billed by a DisCo to the value of electricity supplied to an area during a given period.
NERC said billing losses were driven by both technical and commercial factors.
“The key drivers of billing losses are technical – energy loss along the distribution network, and commercial – DisCo’s inability to account for 100 per cent of the energy supplied,” the commission stated.
It identified energy theft, poor customer enumeration and inaccurate or outdated meters among the factors contributing to commercial losses.
NERC explained that energy theft occurred when consumers deliberately consumed electricity without paying for it.
It also said poor customer enumeration made it difficult for DisCos to identify and properly account for all electricity consumers.
The regulator further noted that unavailable or obsolete meters could prevent accurate measurement of electricity consumed by customers.
Technical losses, it added, occurred through energy lost along wires and transformers within the distribution network.
Despite the growing monetary value of the gap, the figures do not necessarily mean that the physical volume of electricity lost doubled by the same proportion.
The value of electricity is also affected by changes in tariff levels and the overall value of energy supplied.
The figures nevertheless underscore the scale of the billing challenge facing Nigeria’s electricity distribution sector and the financial impact of losses across the power supply chain.
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