Nigeria’s electricity distribution companies (DisCos) recorded a revenue loss of ₦63.46 billion in January 2026, as severe gas supply shortages and persistent grid collapses crippled power generation across the country.
According to a report issued by the Nigerian Electricity Regulatory Commission (NERC) titled “Commercial Performance of Distribution Companies”, 11 DisCos collectively generated ₦204.74 billion in revenue during the month.
The Factsheet reveals that total energy received by the DisCos was valued at ₦336.43 billion, while actual billing stood at ₦268.2 billion, representing a billing efficiency of 79.7 percent.
This gap between energy supplied and revenue collected underscores persistent inefficiencies in the sector.
Ikeja Electric emerged as the DisCo with the highest revenue collection (₦38.80 billion) and also the highest in collection efficiency (87.77 per cent). While the company received energy worth ₦51.90 billion, it billed ₦44.20 billion.
Abuja and Eko Distribution Companies followed closely as each generated ₦35.88 billion in revenue in January. Eko received energy valued at ₦44.90 billion but billed ₦40.98 billion, recording billing efficiency of 91.26 per cent and collection efficiency of 87.55 per cent. Abuja DisCo received ₦54.39 billion worth of energy but issued a bill of ₦45.95 billion, recording billing efficiency of 84.49 per cent and 78.09 per cent as collection efficiency.
At the lower end of the revenue spectrum, Yola DisCo billed ₦4.55 billion, but collected ₦3.06 billion, while Kaduna DisCo billed ₦10.04 billion, but collected ₦5.11 billion. Jos DisCo reported ₦13.09 billion as energy billed, while it collected ₦6.25 billion. Kano DisCo billed ₦15.35 billion but collected ₦8.53 billion.
NERC reported that the average recovery efficiency across all DisCos was 69.16 per cent.
Gas Supply Crisis Worsens Generation Woes
Analysts attribute the revenue losses to a sharp decline in power generation, which fell to approximately 2,000 megawatts after gas suppliers curtailed deliveries over unpaid debts estimated at $1.3 billion. The supply shortfall significantly reduced the electricity available to the national grid, causing widespread disruptions across major cities and rural communities.
Multiple Grid Collapses Compound Challenges
The national grid collapsed twice in January 2026. The first was on January 23 and again on January 27. All 11 DisCos connected to the national grid recorded zero-megawatt allocation during the incident.
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These disruptions followed a partial disturbance on December 29, 2025, meaning Nigeria experienced three significant system failures in less than one month.
Experts attribute recurring collapses to ageing infrastructure, limited maintenance, and technical constraints within the national transmission network.
Structural Challenges Persist
The revenue performance in January highlights deeper structural issues within Nigeria’s electricity market.
Only about 55 percent of Nigeria’s 12 million registered electricity customers currently have prepaid meters, leaving nearly half of all consumers reliant on estimated billing. This metering gap continues to undermine revenue collection efforts and consumer trust.
Sector operators warn that continued gas supply disruptions could worsen the already fragile electricity supply situation. Industry stakeholders have raised concerns about the sustainability of current revenue levels, given the declining quality of power supply and growing consumer dissatisfaction.
The Federal Government recently announced approval of ₦3.3 trillion to settle debts owed to power generation companies. However, observers have said releasing funds to settle legacy debt is not the magic bullet to resolving all the problems in the sector in the long term.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X
