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DisCos Lose ₦2.47trn to Electricity Theft, Others in Six Years

Electricity distribution companies (DisCos) lost about ₦2.47 trillion in unbilled electricity between 2020 and 2025 due to meter bypass, theft, poor metering and technical losses, according to the Nigerian Electricity Regulatory Commission (NERC).

Annual reports showed the value of unbilled electricity rose from ₦281.86bn in 2020 to ₦622.31bn in 2025, a 121% increase. In 2020, DisCos received electricity worth ₦1.098tn but billed only ₦816.16bn, leaving a gap of 25.67%. By 2025, the gap had widened to ₦622.31bn, though the proportion fell to 17.23%.

NERC explained that billing losses stem from technical issues—such as energy lost along distribution networks—and commercial factors, including theft and poor customer enumeration.

“A billing efficiency of 70 per cent means that if a DisCo delivers ₦100 worth of electricity, it can only issue bills worth ₦70 due to commercial losses,” the commission said.

Despite rising financial losses, billing efficiency improved in physical terms, climbing from 74.33% in 2020 to 82.77% in 2025. Eko DisCo recorded the highest efficiency (95.41%), while Yola had the lowest (60.99%).

Abuja DisCo’s CEO, Chijioke Okwuokenye, warned that theft and meter tampering reduce revenue for operations and upgrades, discouraging investment.

“It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.

Jos DisCo raised similar concerns, reporting that 45% of energy supplied in Plateau State is lost to theft. Its COO, Hamisu Jigawa, said: “No business can survive with such a high level of losses.”

Separately, transmission losses added further strain. NERC reported that the Transmission Loss Factor rose from 7.34% in 2020 to 8.21% in 2024 before easing to 8.01% in 2025, costing ₦2.61bn in Q1 2026. Tackling losses, the regulator stressed, requires better metering, enforcement against theft, and improved energy accounting.