The losses, which cover the years 2024 and 2025, draw attention to pervasive problems in Nigeria’s already precarious electricity industry. According to industry data, DisCos lost more than ₦1 trillion in 2024 and even more in 2025. These losses were mostly caused by ineffective billing systems, inadequate revenue collection, and the inability to completely recover expenditures from customers.
There are other factors contributing to this increasing financial hardship. The whole electrical value chain—from gas suppliers to generation firms (GenCos) and, eventually, end users—is impacted by the broader liquidity problem.
DisCos are finding it more and more difficult to fulfill their financial commitments to GenCos as they fight to survive. As a result of growing unpaid bills, many gas suppliers have started to reduce supplies, making it difficult for generation companies to pay them. As a result, the country’s electrical production has been steadily declining.
According to available data, Nigeria’s power generation has drastically decreased in recent months, from about 4,600 megawatts in 2025 to less than 3,500 megawatts in early 2026. As a result, load shedding has been intensified by DisCos, leaving many Nigerians with even less access to electricity. The impact on households and businesses is getting worse; in some areas of the country, consumers now receive less than 12 hours of power per day, while others report receiving as little as three to six hours. The situation has further increased reliance on alternative energy sources, such as generators, which has increased the cost of living for many Nigerians.
Experts caution that without immediate reforms, the Nigerian electricity sector’s debt, which currently stands at over ₦6 trillion, could worsen. The efficiency of the system is still being threatened by important problems like energy theft, tariff deficits, and infrastructure constraints.
Stakeholders are demanding swift government action as the crisis worsens in order to stabilize the industry, enhance revenue collection, and guarantee a sustainable power supply. Millions of Nigerians might still have to deal with frequent blackouts and erratic power until then.
