Precious Anga
Lagos — Nigeria’s electricity distribution companies (Discos) lost more than 1.13 million customers in 2025 despite supplying more electricity, recording higher revenues and expanding prepaid meter installations, according to the latest National Bureau of Statistics (NBS) electricity report.
The Nigeria Electricity Report: Energy Billed, Revenue Generated and Customers by DISCOs (Q4 2025), compiled using data from the Nigerian Electricity Regulatory Commission (NERC), showed that the total customer base declined from 13.30 million in the fourth quarter of 2024 to 12.16 million in the corresponding period of 2025, representing a year-on-year drop of 8.52 per cent, or 1,133,390 customers.
The report stated: “Total customer numbers in Q4 2025 stood at 12.16 million, up from 12.03 million in Q3 2025, representing a 1.11 per cent quarter-on-quarter increase. On a year-on-year basis, the number of customers declined by 8.52 per cent, from 13.30 million recorded in Q4 2024.”
The decline came even as electricity supplied by the Discos increased by 6.76 per cent, rising from 6,207.85 gigawatt-hours (GWh) in the fourth quarter of 2024 to 6,627.56GWh during the same period in 2025. Revenue collection also reached record levels, with the companies generating ₦630.93 billion in the fourth quarter of 2025, up 23.75 per cent from ₦509.84 billion recorded a year earlier. On a full-year basis, collections rose from ₦1.69 trillion in 2024 to ₦2.32 trillion in 2025.
Among the distribution companies, Ikeja Electric recorded the highest annual revenue at ₦440.86 billion, followed by Eko Disco with ₦420.57 billion and Abuja Disco with ₦375.95 billion.
Metering also improved significantly during the period. The number of metered customers increased from 6.21 million to 6.97 million, representing a 12.18 per cent rise, while the share of customers on prepaid meters grew from 46.71 per cent in December 2024 to 57.27 per cent in December 2025. The number of unmetered customers fell by 26.67 per cent, declining from 7.09 million to 5.20 million.
According to the report, “Similarly, the number of metered customers reached 6.97 million in Q4 2025, representing a 4.58 per cent increase from 6.66 million recorded in the preceding quarter. On a year-on-year basis, metered customers increased by 12.18 per cent. In addition, the number of estimated customers stood at 5.20 million in Q4 2025… On a year-on-year basis, estimated customers decreased by 26.67 per cent.”
Despite these operational improvements, several Discos recorded substantial customer losses. Benin Electricity Distribution Company posted the highest decline after losing 379,616 customers, followed by Kaduna Disco with 341,150 and Yola Disco with 311,527 customers. Ibadan Disco lost 199,409 customers, while Port Harcourt, Kano, Eko and Jos distribution companies also recorded declines. In contrast, Enugu Disco added 245,129 customers, Abuja Disco gained 146,378, while Ikeja Electric recorded an increase of 22,016 customers.
Industry analysts attribute the falling customer base to persistent electricity outages, rising tariffs and the growing shift by households and businesses to self-generated power. In 2024, 24 bulk electricity consumers secured licences to disconnect from the national grid and generate their own electricity, while another 22 organisations obtained off-grid generation permits with a combined capacity of about 289 megawatts. Around 250 manufacturers and tertiary institutions have also exited Disco networks in favour of independent power generation.
The trend has pushed energy costs even higher for businesses. Companies listed on the Nigerian Exchange spent ₦400.83 billion on alternative energy sources in the first quarter of 2026, up from ₦386.67 billion recorded during the same period in 2025. Businesses that separately disclosed electricity expenses also reported an 81.5 per cent increase in power costs, reflecting higher tariffs and continued reliance on diesel, gas and other alternative energy sources.
Despite the challenges, Minister of Power Joseph Tegbe has assured Nigerians that electricity supply will improve before the end of the year, saying the Federal Government is implementing reforms aimed at addressing decades of underinvestment and inefficiencies in the power sector.
