Nigerian electricity distribution companies (DisCos) recorded a significant revenue shortfall in May 2026.
According to the latest Commercial Performance factsheet released by the Nigerian Electricity Regulatory Commission (NERC), the combined shortfall between what was billed and what was actually collected by DisCos amounted to ₦44.72 billion.
This financial gap is the result of several operational inefficiencies within the sector such as billing, collection, and tariff shortfalls.
Billing and Collection Shortfalls
According to the report, the DisCos billed customers ₦252.87 billion out of ₦328.95 billion worth of electricity received. They collected ₦208.15 billion, reflecting a collection efficiency of 82.32 per cent, leaving a ₦44.72 billion gap.
The revenue recovery efficiency was 77.31 per cent overall, meaning DisCos recovered significantly less than the allowed tariff.
It reflects a decline of 4.80 percentage points when compared to April when the industry reached an overall Recovery Efficiency of 82.11 per cent.
The average allowed tariff in May was ₦124.39/kWh, but the actual average collected was only ₦96.16/kWh.
DisCos Performance
A closer look at the NERC report reveals a wide performance gap among the 11 distribution companies.
Ikeja Electric was the top performer with a recovery efficiency of 94.63 per cent, up 5.74 percentage points from April, and supported by a Collection Efficiency of 97.28 per cent.
This is followed closely by Eko DisCo, which had a recovery efficiency of 91.54 per cent and Abuja DisCo with 84.84
per cent.
In contrast, the weakest performers struggled to recover even half of their allowed revenue. Kaduna DisCo recorded the lowest recovery efficiency of 39.75 per cent, followed by Jos DisCo (45.38 per cent) and Kano (49.80 per cent).
The three DisCos with the weakest recovery performance were marked in red, having fallen below 50 per cent.
On billing performance, Eko Disco led with a Billing Efficiency of 90.66 per cent, followed by Ikeja DisCo, which recorded 82.86 per cent and Abuja (81.41 per cent). Kaduna also recorded the lowest billing efficiency with 58.64 per cent, followed by Ibadan Disco (65.30 per cent) and Yola (66.16 per cent).
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Overall, the DisCos received ₦328.95 billion worth of energy in May, but billed ₦252.87 billion and collected ₦208.15 billion in revenue.
These persistent revenue gaps highlight a long-standing liquidity crisis in Nigeria’s power sector. The inability of DisCos to collect revenue and meet their financial obligations affects the entire value chain—from paying generating companies (GenCos) to gas suppliers—and has serious implications for the sector’s financial viability and ability to attract necessary investment.
The performance of the DisCos, especially those in the lower tier, suggests that deeper structural issues such as metering gaps, energy theft, and collection inefficiencies persist and need to be urgently addressed.
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