Nigeria’s Power Crisis Deepens as DisCos Record ₦2.4 Trillion Losses in Two Years

Nigeria’s electricity challenges are worsening, with power distribution companies recording massive financial losses that are further destabilising the already fragile sector.

Recent data from the Nigerian Electricity Regulatory Commission shows that electricity distribution companies, commonly known as DisCos, lost a combined ₦2.349 trillion between 2024 and 2025 due to persistent billing inefficiencies and weak revenue collection systems.

The figures highlight deep-rooted structural problems within the Nigerian Electricity Supply Industry, where financial leakages at the distribution level continue to undermine progress made in power generation and transmission.

In 2024 alone, the losses stood at ₦1.015 trillion. By 2025, the situation had worsened significantly, with losses rising by over 31 percent to ₦1.334 trillion. A closer look at the 2025 data reveals that billing inefficiencies accounted for ₦649.87 billion, while poor revenue collection contributed ₦684.28 billion to the total losses.

The financial strain has intensified the broader liquidity crisis in Nigeria’s power sector, which is already grappling with an estimated ₦6 trillion debt as of December 2025. Power generation companies are among the hardest hit, as they struggle with unpaid invoices that have forced many plants to scale down operations or shut down units intermittently.

This has created a ripple effect across the entire electricity value chain. Gas suppliers, who provide fuel for thermal power plants, have reduced supply due to outstanding payments, further limiting electricity generation.

As a result, national power output has dropped sharply. From an average of about 4,600 megawatts in 2025, electricity generation has fallen to below 3,500 megawatts in the early months of 2026. This decline has made it increasingly difficult for distribution companies to meet demand across their service areas.

For everyday Nigerians, the impact is already being felt. Households and businesses are experiencing longer and more frequent blackouts, with many areas receiving less than 12 hours of electricity daily. In some locations, supply has dropped to as little as four to six hours per day.

To manage the shortfall, distribution companies have resorted to load shedding, rationing the limited electricity available across different regions. While this approach helps prevent a total grid collapse, it has done little to ease the burden on consumers already dealing with rising fuel costs and economic pressures.

Industry experts warn that without urgent reforms—particularly in addressing revenue leakages, improving billing systems, and clearing outstanding debts—the Nigerian power sector risks sliding into a deeper crisis.

The growing losses recorded by DisCos are not just a financial concern; they are a clear indicator of systemic challenges that continue to hinder stable and reliable electricity supply across the country.