Indications have emerged that the power sector operated in the fourth quarter 2025 below expected commercial performance and less than Q3, according to a report released by the Nigerian Electricity Regulatory Commission (NERC).
The commercial performance for 2025/Q4 covers energy offtake performance, energy accounting efficiency, billing efficiency, collection efficiency, aggregate technical, commercial, and collection loss, and the market remittance of relevant market participants.
The NERC Q4 report showed that though the naira value of the total energy offtake by all DisCos in 2025/Q4 was N969.19 billion, the total energy billed was N795.06 billion.
Even when the billing translates to a billing efficiency of 82.03% within the quarter under reference, it represents a decrease of 0.66pp compared to 2025/Q3 (82.69%) resulting to DisCos cumulative recorded billing losses of N174.12 billion in 2025/Q4.
Further, DisCos collection efficiency recorded a decrease compared to that of Q3. Accordingly, “The total revenue collected by all DisCos in 2025/Q4 was N630.93 billion out of N795.06 billion billed to customers. This translates to a collection efficiency of 79.36%, representing a decrease of 1.35pp compared to 2025/Q3 (80.70%).”
The DisCos collectively remitted a total sum of N437.27 billion (N359.27 billion for NBET and N77.99 billion for MO) with an outstanding balance of N34.39 billion. This translates to a remittance performance of 92.71% in 2025/Q4 compared to the 95.21% recorded in 2025/Q3.
In the case of remittances by Special and Bilateral Customers in 2025/Q4, “the three international bilateral customers purchasing power from the grid-connected GenCos made a cumulative payment of $10.895 million against the $20.44 million (53.28%) invoice issued by the MO for services rendered in 2025/Q4.
“Furthermore, domestic bilateral customers made a cumulative payment of N3,514.06 million (84.23%) against the N4, 172.11 million invoice issued by the MO for services rendered in 2025/Q4″, the report added.
The energy offtake performance showed that in 2025/Q4, the average energy offtake by DisCos at their trading points was 3,619.21MWh/h, which represents an increase of 290.88MWh/h (+8.74%) compared to the average offtake recorded in 2025/Q3 (3,328.33MWh/h).
“Cumulatively, DisCos recorded an overall offtake performance of 92.18%; the available Partially Contracted Capacity (PCC) during the quarter was 3,926.15MWh/h.
Further, although the total energy received by all DisCos in 2025/Q4 was 7,991.22GWh, the energy billed to end-use customers was only 6,614.57GWh. This translates to an overall energy accounting efficiency of 82.77% and represents a 1.03pp decrease compared to 2025/Q3 (83.80%).
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