Nigeria’s electricity distribution companies (DisCos) recorded N45.61 billion as revenue losses in February 2026 due to collection inefficiencies.
According to the latest Commercial Performance Factsheet released by the Nigerian Electricity Regulatory Commission (NERC), 11 DisCos collected a total of N196.68 billion in revenue in February.
The report indicates that the total energy billed to customers in the month was N242.29 billion. This means 18.82 per cent of the total energy billed to electricity customers was not collected.
This is even worse when compared to N277.09 billion being the worth of total energy received by the 11 DisCos in the month. While N34.8 billion was lost due to billing inefficiency (the gap between total energy received by the DisCos and what was billed), a total of N80.41 billion was lost due to both billing and collection inefficiencies. This highlights the persisting liquidity challenges in the Nigerian Electricity Supply Industry (NESI).
Despite the billing and collection losses, the NERC insisted that there was an improvement in operational performance. Billing efficiency was 87.44 per cent, reflecting an increase of 7.72 per cent from 79.72 per cent in January. Collection Efficiency was 81.17 per cent, also an increase of 4.84 per cent from 76.34 per cent in January.
The report noted significant performance differences between the 11 DisCos.
According to the NERC report, the Abuja Electricity Distribution Company (AEDC) recorded the highest revenue of N38.65 billion, followed by Ikeja DisCo (N35.11 billion) and Eko DisCo (N33.96 billion).
In terms of billing efficiency, Kano DisCo had the highest, recording 99.04 per cent, followed by Eko DisCo (97.20 per cent) and Abuja DisCo (93.70 per cent). On the other hand, Yola DisCo had the lowest billing efficiency of 66.09 per cent, followed by Kaduna DisCo (72.46 per cent).
On collection, Eko DisCo had the highest collection efficiency (94.12 per cent), followed by Abuja DisCo (89.28 per cent) and Benin DisCo (86.95 per cent).
Abuja DisCo received energy worth N46.20 billion, but total energy billed to customers was N43.29 billion, meaning that N4.64 billion was a revenue shortfall.
The total energy received by Eko DisCo was N37.12 billion, but the total energy billed to customers was N36.08 billion, while N33.96 billion was revenue collected, meaning N2.12 billion was lost.
RELATED NEWS:
- DisCos Record ₦1.6trn Revenue Losses in 3 Years as Electricity Crisis Persists
- DisCos Lose ₦63.46bn Revenue in January amid Poor Power Supply
- NERC Sets New Rules to Cut Transmission Loss, Boost Mini-grid Development
- Calls for Decentralised Power System Intensify as Grid Failure Persists
It also had the highest recovery efficiency (100.67 per cent), followed by Abuja DisCo (95.13 per cent) and Ikeja DisCo (85.83 per cent).
Kaduna DisCo had the lowest collection efficiency of 49.27 per cent and the lowest recovery efficiency of 41.20 per cent in February. The DisCo received a total of N14.54 billion worth of energy and issued electricity bills worth N10.53 billion, reflecting a billing loss of N4.01 billion. It collected only N5.19 billion, meaning that N5.34 billion was lost due to collection inefficiency.
NERC disclosed that it approved reduced targets for 2026 (averaging 16.64 per cent) to reflect the expected impact of DisCo investments made in 2025.
Despite the efficiency gains, a significant gap remains between the cost of electricity and what is collected. The actual average collection (N100.27/kWh as indicated in the report) is still well below the allowed tariff (N124.30/kWh).
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