Reported by Ariajegbe Sylvia Esezobor
Nigeria’s electricity Distribution Companies collected ₦205.53 billion in revenue in July 2026 out of ₦250.79 billion billed to customers, leaving a collection gap of ₦45.26 billion, while failing to bill customers for ₦83.15 billion worth of electricity they received, according to the Nigerian Electricity Regulatory Commission’s July 2026 Commercial Performance Factsheet released on September 24.
The figures lay bare the commercial fragility of a power sector that has struggled for decades to convert the electricity it generates into revenue that can sustain investment and improve service delivery. The 11 DisCos received ₦333.94 billion worth of energy during the month but billed customers for only ₦250.79 billion, translating to a billing efficiency of 75.10 per cent, a decline of 1.14 percentage points from June 2026. The ₦83.15 billion billing gap represents the difference between the value of electricity received and the amount invoiced to customers. The ₦45.26 billion collection gap represents bills issued but not recovered during the month. When both metrics are combined, the sector’s overall revenue recovery efficiency stood at 74.91 per cent, meaning that for every ₦100 worth of electricity received, the DisCos recovered less than ₦75.
“Collection Efficiency: Recorded at 81.95%, resulting in a total revenue collection of ₦205.53bn for the month,” NERC stated in the factsheet. The commission said the figures formed part of its ongoing transparency efforts to keep stakeholders informed about the financial health and efficiency of the distribution companies.
The performance of individual DisCos varied widely, revealing deep disparities in operational capacity and commercial discipline across the country. Eko Electricity Distribution Company recorded the highest recovery efficiency at 94.67 per cent, followed by Port Harcourt DisCo at 84.95 per cent and Benin DisCo at 79.15 per cent. On billing performance, Kano DisCo posted the highest billing efficiency at 85.37 per cent, followed by Port Harcourt at 82.34 per cent and Eko at 78.63 per cent. Yola DisCo recorded the lowest billing efficiency at 61.55 per cent, followed by Kaduna at 64.08 per cent and Jos at 68.51 per cent. On collection, Abuja DisCo recorded the largest collection gap at ₦8.34 billion, collecting ₦35.62 billion from ₦43.96 billion billed. Kano DisCo followed with ₦8.26 billion collected from ₦15.66 billion billed, leaving ₦7.4 billion uncollected. Kaduna DisCo collected ₦5.22 billion against ₦10.46 billion billed, leaving ₦5.24 billion uncollected, while Jos DisCo collected ₦5.65 billion from ₦10.72 billion billed, leaving ₦5.07 billion.
The regulator put the sector’s allowed average tariff at ₦130.15 per kilowatt-hour, compared with an actual average collection of ₦97.50 per kilowatt-hour, producing a ₦32.65 per kilowatt-hour difference between what the DisCos were permitted to charge and what they actually collected. Kaduna DisCo recorded the lowest recovery efficiency at 39.71 per cent, followed by Jos at 46.27 per cent and Kano at 55.41 per cent, with the three companies classified as “Red” performers on the commission’s rating scale. Under NERC’s classification, DisCos with a recovery rate below 50 per cent are marked Red, those between 50 and 80 per cent are marked Amber, while those at 80 per cent and above are marked Green.
The figures for July must be read against the broader trajectory of the sector in 2026. Between January and July, the DisCos collected ₦204.74 billion, ₦196.68 billion, ₦196.13 billion, ₦203.61 billion, ₦208.15 billion, ₦202.13 billion and ₦205.53 billion respectively, according to data compiled by Leadership. The sector recorded a combined billing and collection gap of about ₦1.36 trillion in 2025, when the 11 DisCos supplied electricity valued at about ₦3.68 trillion but billed customers for only ₦2.99 trillion. The persistence of the billing gap is driven by a combination of factors that have long plagued Nigeria’s electricity value chain: technical losses in distribution networks, energy theft, inadequate metering, and the inability of many customers to pay for the electricity they consume.
The metering gap remains one of the most consequential structural challenges. As of June 2026, 61.51 per cent of electricity customers were metered, leaving 4.85 million customers without meters, according to data cited by Independent. The absence of meters for millions of customers creates conditions for estimated billing, disputes between consumers and DisCos, and revenue leakage that undermines the financial viability of the sector. The Federal Government has repeatedly pledged to close the metering gap through initiatives such as the Meter Asset Provider scheme and the National Mass Metering Programme, but progress has been slow and uneven.
The billing gap also reflects the physical condition of distribution infrastructure. Decades of underinvestment have left many networks with transformers operating beyond capacity, dilapidated cables and overloaded feeders, all of which contribute to technical losses that are never billed to customers because the electricity is lost before it reaches any meter. Energy theft, both through illegal connections and meter tampering, compounds the problem, particularly in communities where formal metering is absent and enforcement is weak.
NERC’s factsheet is published monthly as part of the commission’s efforts to improve transparency in the Nigerian Electricity Supply Industry. The regulator has said the data is intended to inform stakeholders, including consumers, investors and policymakers, about the commercial realities of the distribution segment. The figures for July show a sector that continues to struggle with the fundamental challenge of converting the electricity it receives into the revenue required to maintain and expand the infrastructure on which the entire power sector depends.
For the millions of Nigerians who endure unreliable electricity supply, the statistics carry a direct message: the system is not just failing to provide power, it is also failing to collect payment for the power it does deliver. That twin failure perpetuates a cycle in which DisCos lack the resources to invest in network upgrades, consumers lack confidence that paying their bills will translate into improved service, and the sector remains trapped in a state of financial fragility. The recovery efficiency of 74.91 per cent is an improvement of 0.67 percentage points from June, but it remains far below the level required to sustain a commercially viable electricity market. Whether the sector can close the billing and collection gaps will determine whether Nigeria’s power sector can attract the investment needed to deliver the reliable electricity that businesses and households have waited decades to receive.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments