The Nigerian Electricity Regulatory Commission (NERC), in its quarterly reports released on Tuesday, has revealed that all the electricity Distribution Companies (DisCos) operating in Nigeria remitted a total sum of N399.20 billion to the electricity market in the second quarter of this year.
NERC, established by the Electricity Act of 2023 to ensure a stable, adequate, and safe electricity supply for consumers and an efficient, investor-friendly market, is the independent body responsible for the technical and economic regulation of Nigeria’s electricity supply industry (NESI).
According to the report, the cumulative upstream invoice payable by DisCos was N417.35 billion, consisting of N348.66 billion for DRO-adjusted generation costs from NBET4 and N68.68 billion for transmission and administrative services by the Market Operator (MO).
The report stated that out of the amount, the DisCos collectively remitted a total sum of N399.20 billion, N333.90 billion for NBET and N65.30 billion for MO, with an outstanding balance of N18.15 billion, which is a remittance performance of 95.65% in 2025/Q2 compared to the 95.86% recorded in 2025/Q1.
The report also revealed that the six international bilateral customers purchasing power from the grid-connected GenCos made a cumulative payment of $9.015 million against the $17.54 million invoice issued to them by the MO for services rendered in 2025/Q2, with a remittance rate of 51.33%.
Additionally, the report showed that the domestic bilateral customers made a cumulative payment of N1,401.00 million against the N2,796.29 million invoice issued to them by the MO for services rendered in 2025/Q2, with a remittance rate of 50.10% while also stating that the naira value of the total energy offtake by all DisCos in 2025/Q2 was N909.59 billion and the total energy billed was N742.34 billion, which translates to a billing efficiency of 81.61%.
Thus, the report showed that at an aggregate level, DisCos were unable to account for N167.25 billion worth of energy received at their trading points in 2025/Q2 while also revealing that the total revenue collected by all DisCos in 2025/Q2 was N564.71 billion out of N742.34 billion billed to customers which translated to a collection efficiency of 76.07%, representing an increase of 1.68pp compared to 2025/Q1 (74.39%).
It said the weighted average Technical, Commercial and Collection (ATCandC) loss across all DisCo in 2025/Q2 was 37.92%, comprising technical and commercial loss (18.39%) and collection loss (23.93%).
Tribune Online reports that ATCandC loss is a summation of the billing losses incurred by a DisCo due to its inability to bill 100% of energy delivered to customers (technical and commercial losses); and collection losses arising from the DisCo’s inability to collect 100% of the bills issued to customers.
The report said the ATCandC loss of 37.92% is 17.38pp higher than the 2025 MYTO target (20.54%) and translates to a cumulative revenue loss of ?158.053 billion across all DisCos. The ATCandC loss decreased by 1.69pp (better performance) compared to 2025/Q1 (39.61%).
All the DisCos, according to the report, except Eko, did not meet their target ATCandC during the quarter as Kaduna DisCo recorded the worst underperformance relative to the target ATCandC (Actual -70.98% versus target -21.32%).