Nigeria's electricity consumer base shrinks by 8.52 percent in one year

Nigerian Electricity Distribution Companies (Discos) have seen their customer base shrink by over 1.13 million, a situation largely attributed to persistent unreliable power supply and increasing energy tariffs. This significant customer departure occurred during 2025, even as findings by Sunday PUNCH indicate that Discos reported increased electricity supply, record revenues, and an expansion in metering.

Insights from the National Bureau of Statistics’ (NBS) recent 'Nigeria Electricity Report: Energy Billed, Revenue Generated and Customers by DISCOs (Q4 2025),' compiled using data from the Nigerian Electricity Regulatory Commission (NERC), reveal a stark contrast: while key operational metrics within the power sector showed improvement, the overall number of customers experienced a considerable decline throughout the year.

The report detailed a decrease in the electricity customer count, moving from 13.30 million in the fourth quarter of 2024 down to 12.16 million by the corresponding period of 2025. This represents an annual reduction of 8.52 per cent, equating to a loss of 1,133,390 customers.

Quoting the report, it noted, “Total customer numbers in Q4 2025 stood at 12.16 million, up from 12.03 million in Q3 2025, representing a 1.11 per cent quarter-on-quarter increase. On a year-on-year basis, the number of customers declined by 8.52 per cent, from 13.30 million recorded in Q4 2024.”

This reduction in customer numbers occurred even as the Discos increased their electricity supplied by 6.76 per cent, escalating from 6,207.85 gigawatt-hours in Q4 2024 to 6,627.56GWh during the same period in 2025.

Furthermore, revenue collection experienced a substantial surge over the same timeframe. The NBS reported that the total revenue amassed by Discos saw a 23.75 per cent year-on-year increase, reaching N630.93 billion in Q4 2025, up from N509.84 billion in Q4 2024. Annually, total collections jumped from N1.69 trillion in 2024 to N2.32 trillion in 2025.

Among the Discos, Ikeja Electricity Distribution Company led in annual revenue, pulling in N440.86 billion. Eko Disco followed with N420.57 billion, and Abuja Disco secured the third spot with N375.95 billion.

Metering efforts also showed considerable progress, with the count of metered customers climbing from 6.21 million to 6.97 million within a single year, marking a 12.18 per cent rise. The report highlighted that the percentage of customers utilizing prepaid meters grew from 46.71 per cent in December 2024 to 57.27 per cent by December 2025. Concurrently, estimated billing decreased by 26.67 per cent, as the number of unmetered customers fell from 7.09 million to 5.20 million.

The report further articulated, “Similarly, the number of metered customers reached 6.97 million in Q4 2025, representing a 4.58 per cent increase from 6.66 million recorded in the preceding quarter. On a year-on-year basis, metered customers increased by 12.18 per cent. In addition, the number of estimated customers stood at 5.20 million in Q4 2025… On a year-on-year basis, estimated customers decreased by 26.67 per cent.”

Notwithstanding these sector-wide improvements, several Discos experienced substantial reductions in their customer base. Benin Electricity Distribution Company registered the most significant drop, shedding 379,616 customers. Kaduna Disco followed with a loss of 341,150 customers, and Yola Disco saw 311,527 customers depart. Ibadan Disco also lost 199,409 customers, with Port Harcourt, Kano, Eko, and Jos Discos reporting similar declines.

Conversely, some Discos managed to grow their customer count. Enugu Electricity Distribution Company attracted an additional 245,129 customers, Abuja Disco gained 146,378, and Ikeja Disco saw an increase of 22,016 customers over the same period.

This trend emerges as both residential and commercial consumers increasingly opt to disconnect from the national grid, citing ongoing power interruptions and exorbitant electricity tariffs. Previous reports from The PUNCH indicated that in 2024, 24 large-scale electricity users obtained licenses to exit the national grid and establish their independent power generation. Additionally, 22 other entities were granted off-grid generation permits, cumulatively capable of producing approximately 289 megawatts.

In a related move, approximately 250 manufacturing firms and higher educational institutions have also departed from the Discos' networks, choosing self-generation as a solution to unreliable electricity provision.

A more recent report by The PUNCH revealed that publicly listed companies on the Nigerian Exchange allocated N400.83 billion towards alternative energy solutions during Q1 2026. This figure marks a 3.66 per cent rise from the N386.67 billion spent in Q1 2025.

The same publication uncovered that companies which detailed their electricity expenditures separately experienced an 81.50 per cent surge in power-related costs. This increase is attributed to the dual pressure of elevated tariffs and sustained reliance on diesel, gas, and other non-grid power alternatives.

Despite these challenges, Chief Joseph Tegbe, the Minister of Power, has given assurances to Nigerians that the nation's electricity supply is set to improve considerably before the year concludes. He stated that the Federal Government is actively pursuing challenging but essential reforms aimed at rectifying years of insufficient investment and mismanagement within the power sector.