Electricity crisis deepens as DisCos record N2.4trn losses

Nigeria’s electricity supply challenges have worsened, with power distribution companies (DisCos) posting a combined loss of about ₦2.349 trillion over the past two years, largely due to inefficiencies in billing and revenue collection. The development has further strained liquidity in the Nigerian Electricity Supply Industry.

The sector, already weighed down by an estimated ₦6 trillion debt as of December 2025, is facing increasing risk of systemic collapse. Several thermal power plants are struggling to access sufficient gas to sustain operations, weakening overall electricity generation.

Data from the Nigerian Electricity Regulatory Commission shows that DisCos recorded ₦1.015 trillion in losses in 2024. This figure rose by 31.4 percent in 2025 to ₦1.334 trillion, bringing the total losses within the two-year period to ₦2.349 trillion.

In 2025 alone, billing inefficiencies accounted for ₦649.87 billion, while poor revenue collection led to losses of ₦684.28 billion. Quarterly analysis shows ₦378.11 billion loss in the first quarter, ₦344.7 billion in the second, a decline to ₦282.8 billion in the third, and a rise again to ₦328.54 billion in the fourth quarter.

The financial strain is now reflecting in worsening power supply nationwide. Electricity generation has dropped from an average of 4,600 megawatts in 2025 to below 3,500 megawatts in the first two months of 2026.

Generation companies are reportedly owed over ₦6 trillion, forcing many plants to operate below capacity or shut down intermittently. Gas suppliers have also reduced deliveries due to unpaid debts, worsening the situation.

As a result, blackouts have become more frequent, with DisCos resorting to load shedding. In many parts of the country, daily electricity supply has fallen below 12 hours, with some areas receiving as little as four to six hours.

In Abuja, areas such as Karu and Lokogoma reportedly get barely three hours of electricity daily. Similar outages have been recorded in Nasarawa, Niger, and Kogi states under the Abuja Electricity Distribution Company.

In Delta State, within the Benin Electricity Distribution Company’s coverage area, supply remains erratic, with communities like Ughelli, Warri, Sapele, and Oleh experiencing prolonged outages despite high estimated billing.

Meanwhile, the Presidential Villa in Abuja is planning to disconnect from the national grid following the completion of a ₦17 billion solar hybrid power project aimed at ensuring uninterrupted electricity supply.

The move has drawn criticism from the Acting Managing Director of the Abuja Electricity Distribution Company, Chijoke Okwuokenye, who argued that improved investment in infrastructure could have guaranteed stable supply to the Villa without abandoning the grid.

Consumer advocacy groups have blamed DisCos for persistent estimated billing and lack of transparency. The Electricity Consumers Association of Nigeria described the billing system as exploitative, noting that many consumers are unwilling to pay for power not supplied.

Experts have also linked the sector’s inefficiencies to inadequate metering. They argue that without proper measurement of consumption, billing remains inaccurate and disputes inevitable. Calls have intensified for comprehensive metering across the entire electricity value chain to improve transparency and accountability.

Stakeholders further expressed concern over what they see as insufficient government action, warning that continued reliance on bailouts without structural reforms may worsen the crisis.