Nigeria’s power sector recorded a total financial loss of N128.41 billion in July 2026 due to unbilled energy and collection losses by the electricity distribution companies (DisCos), highlighting the persisting liquidity crisis in the sector.
This was disclosed in the report on July 2026 Commercial Performance of Distribution Companies released on Thursday by the Nigerian Electricity Regulatory Commission (NERC).
Pinnacle Daily’s analysis of the NERC’s July 2026 Factsheet shows that the total energy received by the 11 DisCos was N333.94 billion while energy billed was N250.79 billion, revealing a billing efficiency of 75.10 per cent. However, this shows a billing shortfall of N83.15 billion.
Out of the N250.79 billion billed to electricity customers across the DisCos, a total of N205.53 billion was collected as revenue. While it shows a collection efficiency of 81.95 per cent, the figure reflects a revenue shortfall of N45.26 billion.
The N83.15 billion lost to unbilled energy received and the N45.26 billion shortfall due to collection losses result in a total of N128.41 billion.
This represents a month-on-month increase of N4.54 billion or 3.7 per cent when compared with N123.87 billion lost to billing and collection inefficiencies in June. The billing and collection losses have remained a recurring incident over the years. In June, the 11 DisCos received N315.73 billion worth of energy. After billing customers a total of N240.71 billion, the utility firms collected N191.86 billion, indicating a total shortfall of N123.87 billion.
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- The July Factsheet showed wide variations in commercial performance across the DisCos. In terms of DisCos’ billing performance, Kano DisCo recorded the highest with a billing efficiency of 85.37 per cent, followed by Port Harcourt (82.34 per cent), Eko (78.63 per cent), Abuja (77.45 per cent) and Ikeja (74.28 per cent). Yola DisCo had the least billing performance with a billing efficiency of 61.55 per cent, followed by Kaduna (64.08 per cent).
On collection efficiency, Kaduna recorded the lowest (49.95 per cent), having collected only N5.22 billion out of N10.46 billion billed to electricity consumers under its franchise. This was followed by Kano, which recorded 52.79 per cent, and Jos (52.70 per cent). Conversely, Eko DisCo recorded the highest collection efficiency (101.78 per cent). The DisCos collected a total of N34.78 billion, surpassing N34.17 billion worth of energy billed to consumers. Benin came second in billing efficiency with 89 per cent, followed by Yola (88.92 per cent), Ikeja (87.85 per cent), and Ibadan (85.97 per cent).
In terms of collection gap by amount, Abuja DisCo recorded the largest with N8.34 billion, as it collected N35.62 billion out of N43.96 billion billed. Kano followed, with N8.26 billion collected from N15.66 billion billed, leaving N7.4 billion uncollected.
NERC set the sector’s allowed average tariff at N130.15/kWh, but the actual average collection was N97.50/kWh.
This produced an overall recovery efficiency of 74.91 per cent, indicating a N32.65/kWh difference between the allowed average tariff and the actual average amount collected.
Top performers in terms of revenue recovery efficiency levels include Eko (94.67 per cent), Port Harcourt (84.95 per cent), and Benin (79.15 per cent). Kaduna DisCo recorded the lowest with a recovery efficiency of 39.71 per cent, followed by Jos with 46.27 per cent, all highlighted in red as they did not reach NERC’s 50 percent benchmark.
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