Meter bypass, electricity theft, poor metering and other commercial and technical losses cost Nigeria’s electricity distribution companies about N2.47tn in unbilled electricity between 2020 and 2025, The PUNCH reports.An analysis of annual reports released by the Nigerian Electricity Regulatory Commission revealed that the value of unbilled electricity rose steadily from N281.86bn in 2020 to N622.31bn in 2025, representing an increase of about 121 per cent over the six-year period.The development highlights the huge financial gap between the electricity delivered to customers by the 11 DisCos and the electricity for which they were able to raise bills.The N2.47tn cumulative gap represents the value of electricity that was not captured in the DisCos’ billing over the period, with portions attributable to electricity theft and meter bypasses, as well as technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.The analysis, based on NERC’s annual reports and the monetary value of energy received and billed by the DisCos, showed that the value of electricity left unbilled by the distribution companies increased steadily from N281.86bn in 2020 to N622.31bn in 2025, as the value of energy received by the DisCos also rose sharply.In 2020, the DisCos received electricity worth N1.098tn but billed only N816.16bn, leaving a difference of N281.86bn, equivalent to 25.67 per cent of the value of electricity received.The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. An analysis of annual reports released by the Nigerian Electricity Regulatory Commission revealed that the value of unbilled electricity rose steadily from N281.86bn in 2020 to N622.31bn in 2025, representing an increase of about 121 per cent over the six-year period.The development highlights the huge financial gap between the electricity delivered to customers by the 11 DisCos and the electricity for which they were able to raise bills.The N2.47tn cumulative gap represents the value of electricity that was not captured in the DisCos’ billing over the period, with portions attributable to electricity theft and meter bypasses, as well as technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.The analysis, based on NERC’s annual reports and the monetary value of energy received and billed by the DisCos, showed that the value of electricity left unbilled by the distribution companies increased steadily from N281.86bn in 2020 to N622.31bn in 2025, as the value of energy received by the DisCos also rose sharply.In 2020, the DisCos received electricity worth N1.098tn but billed only N816.16bn, leaving a difference of N281.86bn, equivalent to 25.67 per cent of the value of electricity received.The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The development highlights the huge financial gap between the electricity delivered to customers by the 11 DisCos and the electricity for which they were able to raise bills.The N2.47tn cumulative gap represents the value of electricity that was not captured in the DisCos’ billing over the period, with portions attributable to electricity theft and meter bypasses, as well as technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.The analysis, based on NERC’s annual reports and the monetary value of energy received and billed by the DisCos, showed that the value of electricity left unbilled by the distribution companies increased steadily from N281.86bn in 2020 to N622.31bn in 2025, as the value of energy received by the DisCos also rose sharply.In 2020, the DisCos received electricity worth N1.098tn but billed only N816.16bn, leaving a difference of N281.86bn, equivalent to 25.67 per cent of the value of electricity received.The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The N2.47tn cumulative gap represents the value of electricity that was not captured in the DisCos’ billing over the period, with portions attributable to electricity theft and meter bypasses, as well as technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.The analysis, based on NERC’s annual reports and the monetary value of energy received and billed by the DisCos, showed that the value of electricity left unbilled by the distribution companies increased steadily from N281.86bn in 2020 to N622.31bn in 2025, as the value of energy received by the DisCos also rose sharply.In 2020, the DisCos received electricity worth N1.098tn but billed only N816.16bn, leaving a difference of N281.86bn, equivalent to 25.67 per cent of the value of electricity received.The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The analysis, based on NERC’s annual reports and the monetary value of energy received and billed by the DisCos, showed that the value of electricity left unbilled by the distribution companies increased steadily from N281.86bn in 2020 to N622.31bn in 2025, as the value of energy received by the DisCos also rose sharply.In 2020, the DisCos received electricity worth N1.098tn but billed only N816.16bn, leaving a difference of N281.86bn, equivalent to 25.67 per cent of the value of electricity received.The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. In 2020, the DisCos received electricity worth N1.098tn but billed only N816.16bn, leaving a difference of N281.86bn, equivalent to 25.67 per cent of the value of electricity received.The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The unbilled value rose to N341.77bn in 2021, when the DisCos received electricity valued at N1.459tn and billed N1.117tn.The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The gap represented 23.43 per cent of the energy received, although the naira value increased by N59.91bn, or 21.3 per cent, from the previous year.In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. In 2022, the DisCos received electricity worth N1.544tn and billed N1.185tn, leaving N358.26bn unbilled. The gap increased by N16.49bn, or 4.8 per cent, from 2021 and represented 23.20 per cent of the value of electricity received.The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The unbilled value rose further to N384.05bn in 2023, as the value of electricity received reached N1.847tn, while the amount billed stood at N1.463tn. The difference increased by N25.79bn, or 7.2 per cent, year-on-year, accounting for 20.79 per cent of the electricity received.The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The gap widened significantly in 2024, reaching N478.29bn. The DisCos received electricity valued at N2.675tn but billed N2.197tn, leaving 17.88 per cent of the value unbilled. The annual gap therefore increased by N94.24bn, or 24.5 per cent, compared with 2023.The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The largest gap in the six-year period was recorded in 2025, when the DisCos received electricity worth N3.611tn but billed only N2.988tn. This left N622.31bn, or 17.23 per cent, of the value of electricity received unbilled.The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The 2025 gap represented an increase of N144.02bn, or 30.1 per cent, from the N478.29bn recorded in 2024.Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Overall, the value of unbilled electricity increased by N340.45bn, or 120.8 per cent, between 2020 and 2025, even though the proportion of the value of electricity received that remained unbilled fell from 25.67 per cent to 17.23 per cent during the period.This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. This means that while the DisCos improved their billing efficiency in percentage terms, the rapid increase in the monetary value of electricity supplied meant that the absolute naira value of the billing gap continued to grow.However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. However, the increase in the naira value of the gap does not mean that the physical volume of electricity lost through theft or other commercial leakages doubled by the same proportion. The value of electricity is affected by tariff levels and the changing value of energy supplied.NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. NERC’s definition of billing efficiency is the ratio of the value of electricity billed by a DisCo to the value of electricity supplied to a given area during a period.The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The commission explained that billing losses have two broad drivers, technical and commercial. According to NERC, “the key drivers of billing losses are i) technical – energy loss along the distribution network, and ii) commercial – DisCo’s inability to account for 100 per cent of the energy supplied.”The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The regulator added that commercial losses could arise from customers stealing electricity through meter bypasses or from factors within the control of DisCos.NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. NERC stated, “Some of the major factors that contribute to billing losses include; Energy Theft: this is the deliberate action by some electricity consumers to consume electricity without making payments; Poor Customer Enumeration: this is the inability of DisCos to identify all electricity consumers.“Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. “Inaccurate Meters/Outdated Meters: this is the inability of DisCos to accurately measure the electricity consumed by end users due to the unavailability of meters or the use of obsolete meters at user sites; and Technical Loss: this is the energy loss to wires and transformers (technical losses) which also contributes to DisCos’ billing inefficiency, and this is particularly relevant for areas of the network with substandard or aged infrastructure.”This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. This distinction is important because the entire N2.47tn cumulative gap cannot be classified as electricity stolen by customers. Rather, it represents the value of energy that was not captured in the DisCos’ billing over the period. A portion of the gap could be associated with electricity theft and meter bypasses, while other portions could arise from technical losses, poor energy accounting, inaccurate meters and inadequate customer enumeration.NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. NERC illustrated the effect of billing inefficiency by explaining that a 70 per cent billing efficiency would mean that a DisCo supplying N100 worth of electricity to customers could only issue bills worth N70.The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The commission said, “A billing efficiency of 70 per cent means that if a DisCo delivers N100.00 worth of electricity to customers, it is only able to issue bills worth N70.00 due to commercial losses.”Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Despite the rising naira value of unbilled electricity losses, the physical-energy measure of billing efficiency showed an improvement over the period. NERC reported that the DisCos received 29,819GWh in 2020 and billed 22,163GWh to end-users, representing a billing efficiency of 74.33 per cent.In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. In 2021, the DisCos received 30,494GWh and billed 23,448GWh, lifting billing efficiency to 76.57 per cent. The figure rose marginally to 76.79 per cent in 2022, when 28,351.62GWh was received and 21,770.79GWh billed.In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. In 2023, the DisCos received 29,979.46GWh and billed 23,747.75GWh, resulting in a billing efficiency of 79.21 per cent. For 2024, 29,126.27GWh was received and 23,919.68GWh billed, putting billing efficiency at about 82.12 per cent.In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. In 2025, the DisCos received 31,251.77GWh and billed 25,867.86GWh, translating to an 82.77 per cent energy accounting efficiency.The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The improvement suggests that a larger proportion of the physical electricity received by the DisCos was being captured through billing. Yet the rising value of the unbilled electricity shows that the financial impact of the remaining gap became more significant as the value of electricity supplied increased.NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. NERC’s 2025 report put the total naira value of energy supplied by the DisCos at N3.683tn, against N2.988tn billed, translating to a billing efficiency of 81.14 per cent. The commission said the DisCos therefore recorded billing losses of N694.80bn in 2025.According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. According to NERC, “DisCos cumulatively recorded billing losses of N694.80bn, driven largely by a combination of i) commercial losses, including energy theft and poor energy accounting; ii) inability of DisCos to bill energy at the weighted average allowed tariff.”The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The commission’s figures also showed wide variations among the DisCos. Eko DisCo recorded the highest billing efficiency at 95.41 per cent, followed by Ikeja at 90.77 per cent and Kano at 90.26 per cent. At the other end, Yola recorded the lowest billing efficiency at 60.99 per cent, followed by Kaduna at 61.56 per cent and Benin at 66.18 per cent.The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The disparity indicates that the problem is not uniform across the distribution network and that the ability of DisCos to account for and bill electricity varies significantly by franchise area.Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Earlier this month, the Managing Director and Chief Executive Officer of Abuja Electricity Distribution Company, Chijioke Okwuokenye, in an interview, complained that electricity theft, including meter bypass and tampering, is a major cause of commercial and technical losses within the electricity distribution network.Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Okwuokenye said that such losses reduced the revenue available for the operation, maintenance and expansion of electricity infrastructure. He said that it potentially resulted in poorer service quality, increased outages, delayed network upgrades and reduced investment in customer service.According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. According to him, electricity theft has wider economic implications, as it can discourage investment in the power sector. “It can also undermine the sustainability of the electricity market and increase the financial burden on customers who comply with the rules,” he said.He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. He said manipulation or bypassing of electricity meters, meter seals and service cables were serious offences under applicable electricity laws and regulations. “Circumstances and applicable law: offenders may also face criminal investigation and prosecution, including fines or imprisonment,” he said.He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. He noted that customers who used unauthorised metering services might also face inaccurate consumption records, rejection of meters during verification, loss of warranties and legal consequences where fraudulent activity was involved.Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Okwuokenye said that funds spent replacing or repairing vandalised equipment could be directed towards network expansion, maintenance and service improvements. He urged customers and communities to report suspected electricity theft, meter tampering, vandalism and other dangerous activities involving electricity infrastructure.Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Similarly, the Jos Electricity Distribution Plc in July raised the alarm over the growing incidence of electricity theft in Plateau State. It revealed that about 45 per cent of energy supplied to the state is lost to illegal activities.JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. JED’s state Chief Operating Officer, Hamisu Jigawa, described electricity theft as one of the company’s biggest challenges, warning that the high level of energy losses could undermine efforts to improve electricity supply across the state.“The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. “The issue of energy theft has become a serious challenge for us as a company. In Plateau alone, about 45 per cent of our energy is lost to theft. No business can survive with such a high level of losses,” he said.Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Meanwhile, the huge billing gap is separate from the Transmission Loss Factor, which measures electricity lost on the transmission network. The TLF also resulted in an estimated N2.61bn loss in the first quarter of 2026, after the Transmission Company of Nigeria failed to meet the loss target set by the Nigerian Electricity Regulatory Commission.TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. TLF measures losses on the transmission network operated by the Transmission Company of Nigeria, rather than electricity that DisCos fail to capture through customer billing. It relates to electricity lost on the transmission network before delivery to distribution companies.NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. NERC defines TLF as the proportion of energy sent out by generating companies that is not delivered to DisCos or exported because it is lost during transmission, causing monetary loss to the electricity value chain.The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The transmission loss factor also increased over most of the period, rising from 7.34 per cent in 2020 to 8.21 per cent in 2024, before easing to 8.01 per cent in 2025, an analysis of NERC’s annual reports has shown.In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. In 2021, the average TLF stood at 7.45 per cent, up by 0.11 percentage point from 7.34 per cent recorded in 2020. This represented a 1.5 per cent increase year-on-year. The factor rose further to 7.87 per cent in 2022, an increase of 0.42 percentage point, or 5.6 per cent, compared with the previous year.The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The upward trend continued in 2023 when the TLF climbed to 8.17 per cent, representing a 0.30 percentage point increase and a 3.8 per cent rise from 7.87 per cent in 2022. The highest TLF during the six-year period was recorded in 2024 at 8.21 per cent, up by 0.04 percentage point, or 0.5 per cent, from the 8.17 per cent recorded in 2023.However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. However, the transmission loss factor declined to 8.01 per cent in 2025, representing a reduction of 0.20 percentage point, or 2.4 per cent, from the previous year.Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. Despite the 2025 decline, the TLF remained 0.67 percentage point higher than the 7.34 per cent recorded in 2020, amounting to a 9.1 per cent increase over the six-year period. The commission explained that the 7 per cent target represents the maximum efficient transmission loss that can be recovered through tariffs paid by customers.It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. It stated, “When TLF exceeds the target set, the additional cost is borne solely by TSP because there is no provision to recover revenues needed to cover excess (inefficient) losses from customers.”The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. The difference between the two measures means that tackling electricity theft and billing gaps cannot be achieved solely through investment in transmission infrastructure.It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers. It requires improved metering, accurate customer enumeration, enforcement against meter bypass and energy theft, better energy accounting by DisCos and more effective monitoring of electricity flows from the transmission network to individual customers.