Discos lose 1.13m customers over increasing energy costs

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Electricity Distribution Companies (DisCos) lost more than 1.13 million customers in 2025 despite supplying more electricity, generating record revenue and expanding metering, according to the latest data released by the National Bureau of Statistics (NBS).

The NBS, in its Nigeria Electricity Report: Energy Billed, Revenue Generated and Customers by DISCOs (Q4 2025), compiled from data provided by the Nigerian Electricity Regulatory Commission (NERC), said the total number of electricity customers declined from 13.30 million in the fourth quarter of 2024 to 12.16 million in the corresponding period of 2025.

The report showed the customer base fell by 8.52 per cent year-on-year, representing a loss of 1,133,390 customers, although the figure rose slightly by 1.11 per cent from 12.03 million recorded in the third quarter of 2025.

The decline occurred even as electricity supplied by the distribution companies increased by 6.76 per cent to 6,627.56 gigawatt-hours (GWh) in the fourth quarter of 2025 from 6,207.85 GWh recorded in the same period of 2024.

Revenue collection also improved during the period. The NBS said total revenue generated by the DisCos rose by 23.75 per cent year-on-year to N630.93 billion in the fourth quarter of 2025, compared with N509.84 billion in the corresponding quarter of 2024.

On an annual basis, electricity revenue increased from N1.69 trillion in 2024 to N2.32 trillion in 2025.

Ikeja Electricity Distribution Company recorded the highest annual revenue at N440.86 billion, followed by Eko Disco with N420.57 billion and Abuja Disco with N375.95 billion.

The report also indicated continued progress in customer metering. The number of metered customers rose from 6.21 million in the fourth quarter of 2024 to 6.97 million in the corresponding period of 2025, representing a 12.18 per cent increase.

As a result, the proportion of customers on prepaid meters increased from 46.71 per cent to 57.27 per cent within the year, while the number of customers on estimated billing declined by 26.67 per cent, from 7.09 million to 5.20 million.

Among the distribution companies, Benin Electricity Distribution Company recorded the highest customer loss, with 379,616 customers leaving its network. Kaduna Disco lost 341,150 customers, while Yola Disco recorded a decline of 311,527 customers. Ibadan Disco also lost 199,409 customers, with Port Harcourt, Kano, Eko and Jos Discos posting smaller declines.

In contrast, Enugu Electricity Distribution Company recorded the highest customer growth, adding 245,129 customers. Abuja Disco gained 146,378 customers, while Ikeja Disco added 22,016 customers during the period.

The decline in customer numbers comes amid increasing migration by households and businesses to alternative power sources due to persistent electricity outages and rising energy costs.

In 2024, 24 bulk electricity consumers obtained licences to disconnect from the national grid and generate their own power, while 22 other entities secured permits for off-grid generation with a combined capacity of about 289 megawatts.

Similarly, about 250 manufacturers and tertiary institutions have reportedly exited the distribution companies’ networks in favour of self-generation.

Corporate spending on alternative energy has also continued to rise. Companies listed on the Nigerian Exchange spent N400.83 billion on alternative energy in the first quarter of 2026, up from N386.67 billion in the corresponding period of 2025. Firms that separately disclosed electricity expenses also reported an 81.5 per cent increase in power costs, reflecting higher tariffs and continued reliance on diesel, gas and other alternative energy sources.

Meanwhile, Minister of Power, Joseph Tegbe, has assured Nigerians that electricity supply would improve before the end of the year, saying the Federal Government is implementing reforms aimed at addressing longstanding challenges in the power sector.

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