The convener of PowerUp Nigeria, a consumer rights advocacy group, Adetayo Adegbemle, has raised concerns over the sustainability of electricity distribution companies (DisCos).
He warned that many of them may collapse if the current tariff shortfall regime is removed.
Adegbemle, speaking against the backdrop of the July 2025 fact sheet released by the Nigerian Electricity Regulatory Commission (NERC), noted that DisCos are only able to recover about 40 per cent of the energy delivered to them.
The remaining 60 per cent, he said, is covered by the federal government as a tariff shortfall.
“Be guided that this is a rating based on about 40 per cent of the energy delivered to them, while the rest of the energy is to be paid by the Federal Government as a tariff shortfall.
“If they still can’t pay for 40 per cent, tell me how they can survive if the tariff shortfall is removed and they are asked to recover 100 per cent of the Cost-Reflective Tariff (CRT),” Adegbemle said.
According to the July fact sheet, the average CRT stands at ₦210/kWh, while the average allowed tariff is ₦116/kWh.
The average recovery rate, however, is far lower at ₦89/kWh, with some DisCos recovering as little as ₦30 and ₦41/kWh.
Adegbemle stated that the wide gap highlights the fragility of the power sector and the urgent need for reforms to ensure financial sustainability.
“The sector still has a long way to go as far as sustainability is concerned,” he added.
NEWSNGR had earlier reported that Nigeria’s electricity distribution companies (DisCos) recorded a ₦57bn revenue shortfall in July 2025.
According to the latest fact sheet released by the Nigerian Electricity Regulatory Commission (NERC), DisCos received electricity worth ₦300.04bn during the period.
However, only ₦243.14bn was billed to customers, which reflects a billing efficiency of 81.04 per cent.
This resulted in a shortfall of approximately ₦56.9bn in unbilled energy.
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