Nigeria’s 11 electricity Distribution Companies (DisCos) generated ₦220.93 billion in revenue from customers in August 2026, representing a 7.49 per cent increase from the ₦205.53 billion recorded in July, as billing and revenue collection efficiencies improved during the period.
The latest Commercial Performance Factsheet released by the Nigerian Electricity Regulatory Commission (NERC) showed that the distribution companies recorded a billing efficiency of 75.36 per cent in August, slightly higher than the 75.10 per cent achieved in the preceding month.
The improvement came as the DisCos increased their revenue collection efficiency to 84.62 per cent from 81.95 per cent in July, indicating improved recovery of electricity bills issued to customers.
According to the factsheet, the 11 distribution companies received electricity valued at ₦346.49 billion during the month but billed customers ₦261.10 billion, leaving ₦85.39 billion worth of electricity unbilled.
The figures indicate that the companies billed customers for approximately three-quarters of the value of electricity received during the period, highlighting persistent challenges in converting electricity supplied into revenue.
Of the ₦261.10 billion billed to consumers, the DisCos collected ₦220.93 billion, leaving an outstanding balance of ₦40.17 billion.
The August revenue collection represented a 2.66 percentage-point improvement in collection efficiency compared with July, while billing efficiency increased by 0.26 percentage points.
A breakdown of the performance showed considerable differences among the distribution companies in their ability to recover revenue from customers.
Abuja Electricity Distribution Company recorded the highest collection efficiency at 91.91 per cent, collecting ₦37.57 billion out of the ₦40.88 billion billed during the month.
Its performance represented a 10.89 percentage-point improvement over July.
However, Eko and Ikeja electricity distribution companies recorded declines of 5.42 and 9.67 percentage points, respectively, in their collection efficiencies compared with the previous month.
Its performance represented a 10.89 percentage-point improvement over July.
However, Eko and Ikeja electricity distribution companies recorded declines of 5.42 and 9.67 percentage points, respectively, in their collection efficiencies compared with the previous month.
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At the lower end of the performance table, Kaduna Electric recorded the weakest collection efficiency at 55.44 per cent, having collected ₦5.57 billion from ₦10.05 billion billed to customers.
Jos Electricity Distribution Company followed with 61.98 per cent, collecting ₦6.42 billion out of ₦10.35 billion, while Kano DisCo recorded 60.31 per cent after recovering ₦9.07 billion from ₦15.04 billion billed.
On billing efficiency, Eko DisCo recorded the highest performance at 84.49 per cent, followed by Kano with 82.24 per cent and Port Harcourt with 80.22 per cent.
Kaduna recorded the lowest billing efficiency at 60.92 per cent, while Yola and Jos posted 64.04 per cent and 66.47 per cent, respectively.
The regulator’s figures also showed that the electricity distribution companies recorded an overall revenue recovery efficiency of 77.63 per cent in August, compared with 74.91 per cent in July.
Revenue recovery efficiency measures how much of the allowed tariff value is actually recovered by the distribution companies for each unit of electricity sold.
The average allowed tariff stood at ₦130.15 per kilowatt-hour (kWh), while the actual average revenue collected was ₦101.03 per kWh, leaving a difference of ₦29.12 per kWh.
Eko DisCo recorded the highest revenue recovery efficiency at 96.29 per cent, with an average collection of ₦135.58 per kWh against an allowed tariff of ₦140.80 per kWh.
Eko DisCo recorded the highest revenue recovery efficiency at 96.29 per cent, with an average collection of ₦135.58 per kWh against an allowed tariff of ₦140.80 per kWh.
Ikeja followed with 84.22 per cent, while Abuja recorded 83.63 per cent.
In contrast, Kaduna had the weakest revenue recovery efficiency at 41.90 per cent, collecting an average of ₦51.03 per kWh against an allowed tariff of ₦121.80 per kWh.
Jos and Kano followed with 52.80 per cent and 60.98 per cent, respectively.
The August performance represents an improvement in the commercial operations of the distribution segment of Nigeria’s electricity market, particularly in revenue collection.
However, the substantial value of electricity received but not billed, alongside outstanding customer payments, underscores the continuing challenges facing the sector in billing accuracy, revenue recovery and financial sustainability.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X