Thursday, June 4, 2026 - Electricity Distribution Companies (DisCos) in Nigeria generated nearly N600 billion in revenue during the first quarter of 2026, according to the latest commercial performance data released by the Nigerian Electricity Regulatory Commission (NERC).
The figures show that the 11 distribution companies
collectively collected N597.55 billion from consumers between January and March
2026, despite ongoing challenges in the country's power sector.
According to NERC's commercial performance factsheets, the
DisCos recorded N204.74 billion in revenue in January, N196.68 billion in
February and N196.13 billion in March, representing an average monthly
collection of approximately N199.18 billion.
The data revealed mixed commercial performance across the
distribution companies, with varying levels of billing efficiency, collection
efficiency and revenue recovery recorded during the quarter. In January, the
companies billed customers a total of N268.20 billion but collected N204.74
billion, leaving N63.46 billion in unpaid bills. Billing efficiency stood at
79.72 per cent, while collection efficiency was 76.34 per cent.
February recorded total billings of N242.29 billion, with
collections amounting to N196.68 billion. This resulted in N45.61 billion in
uncollected revenue. The month posted improved billing efficiency of 87.44 per
cent and collection efficiency of 81.17 per cent.
In March, total billings reached N246.43 billion, while
collections stood at N196.13 billion, leaving a shortfall of N50.30 billion.
Billing and collection efficiencies for the month were 83.89 per cent and 79.59
per cent respectively.
The reports also indicated significant volumes of unbilled
energy throughout the quarter, highlighting persistent operational challenges
within the electricity distribution segment.
Among the strongest performers were Eko Electricity
Distribution Company and Ikeja Electric, which consistently recorded higher
revenue recovery rates. Eko DisCo notably achieved a recovery efficiency of
more than 100 per cent in February.
In contrast, some companies continued to struggle with
collections. Kaduna Electricity Distribution Company recorded one of the lowest
recovery rates during the period, posting a recovery efficiency of 41.20 per
cent in February.
The NERC data tracks key industry indicators, including
energy received, energy billed, total billings, revenue collections and
recovery efficiency, providing insight into the commercial viability of the
privatised electricity distribution companies.
The revenue figures come amid continued complaints from consumers over high
electricity tariffs, frequent outages and poor service delivery. Nigeria also
faced a prolonged power supply challenge during the first quarter of the year,
largely driven by gas supply constraints that caused electricity generation to
fall significantly, at times dropping from about 4,000 megawatts to below 2,000
megawatts.
Industry stakeholders have repeatedly called for improved
metering, stronger measures against energy theft and enhanced customer service
to improve collection rates and overall sector performance.
Operational data from the Nigerian Independent System
Operator showed that thermal power plants require approximately 1,629.75
million standard cubic feet of gas per day to operate at optimal capacity.
However, as of February 23, 2026, actual gas supply stood at about 692 million
standard cubic feet per day, representing less than 43 per cent of required
demand.
The reduction in gas supply forced several power plants to
shut down, while the Transmission Company of Nigeria implemented load-shedding
measures to distribute limited electricity generation among distribution
companies. DisCos have repeatedly attributed service disruptions to gas
shortages, although some consumers have reported improvements in electricity
supply in recent weeks.
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