The revenue increase recorded by Electricity Distribution Companies (DisCos) operating in Nigeria is due to improved meter installation across the country, Analysts say.
Distribution companies have continued to post high revenues as cumulative revenues from January to June 2025 stood at N1.13 trillion, according to the latest Nigerian Electricity Regulatory Commission report.
The total revenue in the period is higher than 758.31 billion generated in the first six months of 2024. It also higher than total revenue collected in the entirety of 2024, which stood at N1.1 trillion.
Electricity sector analysts who spoke to BusinessDay has attributed this increase in revenue to improved meter installation across the country as well as the implementation of DisCos remittal obligation.
Speaking with BusinessDay, Adetayo Adegbemle, power sector analyst and executive director of PowerUp Nigeria, said that the increase in revenue is the impact of increased meter installation in the system.
According to Adegbemle, the installation of meters has enabled the DisCos to collect more revenues from consumers.
“I strongly believe that we are seeing the impact of more metering, which is allowing them to collect more. If they listen to us, they will do everything possible to close off the metering gap, and then they will see more collection coming in.
Read also: DisCos revenue hit N1.13trn in 6 months
“We have had more meters of recent, we have the meter asset fund that NERC initiated. That is the latest and the newest implementation of more metering.
“And I am sure because since January, February, a lot of the DisCos have implemented it. So, I want to believe that this is the impact that we are seeing,” he said.
NERC in 2024 approved the Meter Acquisition Fund (MAF) scheme to primarily to address the challenge of DisCo creditworthiness inhibiting the deployment of end-use meter by creating a credible revenue stream from the market funds on the back of which long term financing may be secured by the utilities.
The commission noted that the inability of distribution companies to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments.
“The deployment of funds under the MAF scheme shall accelerate the deployment of meters and a closure of the current metering gap thereby reducing commercial & collection losses to DisCos, enhancing quality of service and improvement of customer satisfaction,” it stated in the order.
Also speaking with BusinessDay, Lanre Elatuyi, power sector analyst said that with MAP program, more customers were being metered, thereby leading to increased revenue collection by DisCos.
He also attributed the revenue growth to DisCos remittal obligations (DRO) which mandates the DisCos to pay a fixed percentage of their collected revenue to market participants, primarily the Nigerian bulk electricity trading Plc and market operators, to ensure financial stability in the power sector.
” There is a minimum obligation called DRO that they have to meet, so it is compulsory for them to meet it. So, that may have also informed their better performance this year.
“And I think, lately, with the meter initiative that is going on, a lot more customers are getting metered. As many customers are getting metered from that, they are able to track all the leakages and all the loopholes. So, I think these are the possible causes.
“So, they need to meet their DRO, otherwise they will not earn the revenue that they’re supposed to earn,” he said.
According to the NERC, a total of 187,194 meters were installed in the first quarter of 2025.
During the quarter, 148,713 meters (79.44 percent of the total installations) were installed under the MAP framework, 36,787 meters were installed under the Meter Acquisition Fund (MAF), 1,074 meters were installed under the DisCo Financed framework, and 620 meters were installed under the Vendor Financed framework.
BusinessDay’s analysis of the total revenue showed that the DisCos posted a total revenue at N178.68 billion in January, N191.75 billion in February, N188.89 billion in March, N199.85 billion in April, N191.57 billion in May and N182.11 billion in June 2025.
The increase in revenue has however not translated to an increase in power supply as households and businesses still grappling with poor electricity supply.
Power outages have worsened in 2025, crippling businesses, especially in the manufacturing and services sectors, and forcing households to rely increasingly on expensive alternative sources like diesel and petrol generators, solar panels, and inverters.
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