Nigeria’s Electricity Distribution Companies (Discos) lost more than 1.13 million customers in 2025 as soaring electricity tariffs, unreliable power supply, and increasing reliance on alternative energy sources drove homes and businesses away from the national grid.
Despite recording higher electricity distribution, stronger revenue generation, and improved metering, the country’s power distributors experienced a significant decline in customer numbers, according to the latest National Bureau of Statistics (NBS) Nigeria Electricity Report compiled using data from the Nigerian Electricity Regulatory Commission (NERC).
The report revealed that the total number of electricity customers dropped from 13.30 million in the fourth quarter of 2024 to 12.16 million in the corresponding period of 2025, representing a loss of 1,133,390 customers or an 8.52 percent year-on-year decline.
However, on a quarterly basis, customer numbers rose slightly from 12.03 million in Q3 2025 to 12.16 million in Q4 2025, indicating a modest recovery toward the end of the year.
While customer numbers declined, electricity supplied by the Discos increased by 6.76 percent, rising from 6,207.85 gigawatt-hours (GWh) in Q4 2024 to 6,627.56 GWh during the same period in 2025.
Revenue collection also reached record levels.
According to the NBS, total revenue generated by electricity distribution companies climbed by 23.75 percent, increasing from ₦509.84 billion in Q4 2024 to ₦630.93 billion in Q4 2025.
On an annual basis, Disco revenue grew from ₦1.69 trillion in 2024 to ₦2.32 trillion in 2025, reflecting improved collections despite declining customer numbers.
Among the operators, Ikeja Electricity Distribution Company generated the highest annual revenue at ₦440.86 billion, followed by Eko Disco with ₦420.57 billion, while Abuja Disco recorded ₦375.95 billion.
The report also showed significant progress in electricity metering.
The number of metered customers increased from 6.21 million to 6.97 million, representing a 12.18 percent year-on-year increase.
As a result, the proportion of prepaid meter users rose from 46.71 percent in December 2024 to 57.27 percent by December 2025.
At the same time, estimated billing declined sharply as the number of unmetered customers fell from 7.09 million to 5.20 million, representing a 26.67 percent decrease.
Several electricity distribution companies experienced major customer losses during the year.
Benin Electricity Distribution Company recorded the biggest decline after losing 379,616 customers.
It was followed by:
- Kaduna Disco – 341,150 customers lost
- Yola Disco – 311,527 customers lost
- Ibadan Disco – 199,409 customers lost
Port Harcourt, Kano, Eko and Jos Discos also recorded customer declines during the period.
In contrast, some operators expanded their customer base.
Enugu Electricity Distribution Company gained 245,129 customers, Abuja Disco added 146,378, while Ikeja Disco recorded an increase of 22,016 customers.
Industry experts attribute the customer decline to persistent electricity outages, rising tariffs and the growing adoption of independent power generation.
Many households, businesses, manufacturers and institutions are increasingly investing in solar energy, diesel generators and other off-grid solutions to reduce dependence on the national grid.
Earlier reports showed that 24 major electricity consumers obtained licences in 2024 to leave the national grid and generate their own electricity, while another 22 organisations secured off-grid generation permits with a combined capacity of about 289 megawatts.
Around 250 manufacturers and tertiary institutions have also switched to self-generated power because of unreliable electricity supply.
More recently, companies listed on the Nigerian Exchange (NGX) spent ₦400.83 billion on alternative energy in the first quarter of 2026, a 3.66 percent increase from the ₦386.67 billion recorded during the same period in 2025.
Businesses that separately reported electricity expenses also recorded an 81.5 percent increase in power costs, highlighting the financial impact of higher electricity tariffs and continued reliance on diesel, gas and other alternative energy sources.
Despite the challenges, Minister of Power Joseph Tegbe has assured Nigerians that electricity supply will improve before the end of the year.
According to the minister, the Federal Government is implementing long-term reforms aimed at addressing decades of underinvestment, weak infrastructure and operational inefficiencies in Nigeria’s power sector.
