Revenue collected by Nigeria’s electricity Distribution Companies grew by about 450 per cent over eight years. It climbed from N218.16 billion in the first half of 2018 to N1.2 trillion in the same period of 2026, far outpacing the growth in electricity supply.
Data from the Nigerian Electricity Regulatory Commission showed that DisCos’ revenue rose by about N983.04 billion. Total electricity supply, however, grew by only 4.8 per cent, from 16,861 gigawatt-hours in the first half of 2018 to 17,668GWh in the first half of 2026. This comes as the DisCos’ debt profile over the last six months reached N700billion.
The data also indicated that average available generation capacity declined by 41 per cent, from 7,565.5 megawatts in the first half of 2018 to 4,456MW in the corresponding period of 2026.
On an annual basis, DisCos’ revenue increased by about 666 per cent in ten years, from N302.93 billion in 2016 to N2.32 trillion in 2025. This highlights the widening gap between revenue growth and improvements in electricity supply.
NERC data showed that DisCos’ annual revenue rose by about N2.016 trillion over the period, while average daily power generation increased by approximately 36 per cent, from 3,276MW in 2016 to 4,475MW in 2025.
The disparity has raised concerns about the extent to which increased revenue collections have translated into better electricity supply and service delivery to consumers, 13 years after the privatisation of the power sector.
NERC data also showed that in the first half of 2026, DisCos failed to collect N700.53 billion. While the utilities received N1.9trillion worth of energy from the market, they collected N1.2trillion from consumers, leaving a balance of N700 billion.
The Rural Electrification Agency (REA) has estimated that about 85 million Nigerians still lack access to electricity.
In 2016, DisCos collected N302.925 billion, while total annual electricity supply stood at 23,742GWh. By 2025, revenue had risen by about 666 per cent to N2.3188 trillion, while annual electricity supply increased by 31.6 per cent to 31,251GWh.
DisCos’ revenue rose to N370.456 billion in 2017, before increasing to N448.749 billion in 2019 and N542.729 billion in 2020. Collections climbed further to N775.336 billion in 2021 and N841.811 billion in 2022.
The upward trend accelerated in subsequent years, with revenue reaching N1.0775 trillion in 2023, N1.6597 trillion in 2024 and N2.3188 trillion in 2025.
By comparison, annual electricity supply grew from 23,742GWh in 2016 to 33,489.17GWh in 2019 and 35,242.17GWh in 2020. It rose further to 36,710.60GWh in 2023 and peaked at 37,093.70GWh in 2024, before declining to 31,251GWh in 2025.
The divergence was particularly evident in 2025, when annual electricity supply fell by about 15.7 per cent from 37,093.70GWh in 2024, even as DisCos’ revenue increased from N1.6597 trillion to N2.3188 trillion.
The bulk of the power sector was privatised in November 2013. Generation plants and 11 distribution companies were handed over to private investors, while the Federal Government retained control of the transmission segment.
The arrangement formed the basis of the Nigerian Electricity Supply Industry (NESI).
However, 13 years after privatisation, concerns remain over the pace of growth in electricity supply, despite over N10 trillion in public investment in the sector.
NERC data showed that in 2016, three years after privatisation, the average available generation capacity of 27 power plants was 7,527MW, while actual average generation stood at 3,276MW.
By 2025, with installed generation capacity of more than 13,000MW, average available capacity had fallen by 28.3 per cent to 5,398MW, while average generation rose to 4,475MW.
