DisCos Record ₦2.4tn Loss As Nigeria’s Power Supply Worsens
Nigeria’s Power Crisis Deepens as DisCos’ ₦2.4 Trillion Losses Trigger Widespread Outages
Nigeria’s electricity sector is facing a mounting crisis, with distribution companies (DisCos) reporting over ₦2.4 trillion in losses over the past two years, fueling declining generation, rising debt, and prolonged blackouts nationwide.
According to industry and regulatory data, the losses—which span 2024 and 2025—stem from billing inefficiencies, weak revenue collection, and poor cost recovery. DisCos recorded losses exceeding ₦1 trillion in 2024, rising to about ₦1.334 trillion in 2025, bringing the total to roughly ₦2.349 trillion. Billing inefficiencies accounted for ₦649.87 billion, while poor revenue collection added ₦684.28 billion in 2025 alone.
The financial strain is disrupting the entire electricity value chain. DisCos are increasingly unable to pay generation companies (GenCos), which in turn struggle to settle gas suppliers. Gas producers have reduced supply, contributing to a drop in national power generation from an average of 4,600 MW in 2025 to below 3,500 MW in early 2026, according to available data.
As a result, load shedding has intensified, leaving many households and businesses with less than 12 hours of electricity daily, and some areas receiving as little as three to six hours. In Abuja, communities in Karu and Lokogoma reportedly get barely three hours of power, while parts of Delta State under the Benin Electricity Distribution Company (BEDC) experience prolonged outages lasting several days.
The broader sector is also burdened by over ₦6 trillion in debt, with generation companies owed significant sums. Several power plants are operating below capacity due to inadequate gas supply, further worsening electricity shortages.
Consumer frustration has grown sharply. Chijoke James, Chairman of the Electricity Consumers Association of Nigeria, criticised exploitative billing practices:
“At the distribution level, sharp practices have persisted for years. Estimated billing remains the most exploitative system in the Nigerian power sector. The outrageous bills issued to customers are the main reason many resist payment. Some DisCo staff also exploit the situation by extorting consumers under the threat of disconnection without remitting such payments to the company.”
Metering gaps remain a key challenge. Lawyer and power consultant Bode Fadipe noted:
“Once a customer has no meter, any billing method becomes presumptive and inherently inaccurate. The real solution is comprehensive metering across the electricity chain.”
In response to the crisis, the Presidential Villa in Abuja is reportedly planning to exit the national grid following the completion of a ₦17 billion solar mini-grid project to secure uninterrupted power supply. Engr Chijoke Okwuokenye, Acting MD of Abuja Electricity Distribution Company (AEDC), said:
“With a little more investment in storage and network upgrade, uninterrupted supply could be guaranteed. Technology now allows hybrid solutions that can provide reliable power, yet many government agencies continue to rely on generators, indicating other interests at play.”
Experts warn that without urgent reforms, Nigeria’s power sector risks further instability, deeper losses, and prolonged nationwide blackouts, affecting households, businesses, and the broader economy.
This crisis highlights the urgent need for investment in metering, revenue collection, and infrastructure upgrades to restore confidence and ensure reliable electricity supply.