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By Daniel Adaji
The Nigerian Electricity Regulatory Commission (NERC) has revealed that electricity distribution companies (DisCos) across the country lost about N158.05 billion to inefficiencies in their operations during the second quarter of 2025.
According to the Second Quarter 2025 NERC Report released on Tuesday, the losses were traced to Aggregate Technical, Commercial and Collection (ATC&C) inefficiency, a key indicator of the sector’s financial and operational health.
The report stated that the weighted average ATC&C loss across all DisCos stood at 37.92 percent in the period under review, representing a slight improvement from the 39.61 percent recorded in the first quarter of 2025.
“The ATC&C loss of 37.92 per cent is 17.38 percentage points higher than the 2025 MYTO target of 20.54 per cent and translates to a cumulative revenue loss of N158.053 billion across all DisCos,” NERC said.
The Commission explained that ATC&C losses combine technical and commercial losses, arising from the inability of distribution companies to account for all energy delivered to customers, and collection losses resulting from failure to recover billed revenue.
While the report noted a marginal improvement in overall performance, none of the DisCos, except Eko Electricity Distribution Company (EKEDC), met their ATC&C loss targets during the period. Kaduna Electric recorded the poorest performance, with an actual ATC&C loss of 70.98 percent against a target of 21.32 percent.
The Commission attributed the high losses to inefficiencies in billing, energy theft, and inadequate collection mechanisms by DisCos. “All the DisCos except Eko failed to achieve their target ATC&C during the quarter,” the report stated, adding that collection losses alone accounted for 23.93 percent, while technical and commercial losses contributed 18.39 percent.
Despite the losses, the report indicated a modest rise in revenue collection. DisCos collectively billed N742.34 billion worth of energy in the quarter but managed to collect N564.71 billion, achieving a collection efficiency of 76.07 percent, up from 74.39 percent recorded in the first quarter.
Billing efficiency for the same period was 81.61 percent, showing that distribution companies failed to account for ₦167.25 billion worth of energy received at their trading points.
The NERC report further disclosed that the total market invoice payable by DisCos stood at N417.35 billion, out of which they remitted N399.20 billion — representing a 95.65 per cent remittance performance.
While acknowledging the slight improvement, the Commission emphasised that sustained ATC&C inefficiencies continue to undermine the liquidity of the Nigerian Electricity Supply Industry (NESI), threatening investment and service delivery.
NERC reiterated its commitment to enforcing performance improvement plans and regulatory compliance among market participants, noting that financial discipline in the distribution segment remains critical to achieving the objectives of the Electricity Act 2023.