Nigerian DisCos Generate N801bn Revenue in 4 Months Despite Worsening Power Supply Crisis
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Electricity distribution companies (DisCos) generated N801.16 billion in revenue from electricity consumers between January and April 2026, even as millions of Nigerians grappled with prolonged blackouts, erratic power supply and persistent service challenges.
Figures released by the Nigerian Electricity Regulatory Commission (NERC) in its commercial performance factsheets showed that the country's 11 electricity distribution companies billed customers a combined N1.01 trillion during the four-month period but recovered only N801.16 billion, leaving an outstanding N207.77 billion in unpaid bills.
Source: UGC
Monthly collections stood at N204.74 billion in January, N196.68 billion in February, N196.13 billion in March, and N203.61 billion in April.
Revenue Collections Improve Despite Unpaid Bills
The NERC data revealed varying levels of billing and collection efficiency across the four months.
In January, customers were billed N268.20 billion, while DisCos collected N204.74 billion, leaving N63.46 billion unpaid. Billing efficiency was 79.72 per cent, while collection efficiency stood at 76.34 per cent.
For February, total billings declined to N242.29 billion, with collections reaching N196.68 billion, resulting in N45.61 billion in outstanding payments. Billing efficiency improved to 87.44 per cent, while collection efficiency rose to 81.17 per cent.
In March, electricity distributors billed consumers N246.43 billion but recovered N196.13 billion, leaving N50.30 billion unpaid. Billing and collection efficiencies were 83.89 per cent and 79.59 per cent, respectively.
By April, total billings increased to N252.43 billion, while revenue collections climbed slightly to N203.61 billion, leaving another N48.82 billion outstanding. Collection efficiency also improved marginally to 80.66 per cent.
The regulator also noted that a considerable portion of electricity supplied during the period was never billed, reflecting ongoing challenges such as inadequate metering, commercial losses and operational inefficiencies across the distribution network.
Among the distribution companies, Eko Electricity Distribution Company recorded one of the strongest performances, posting a recovery efficiency of 102.09 per cent in April. Port Harcourt, Abuja, Ikeja, and Benin DisCos also recorded recovery efficiencies above 85 per cent.
However, Kaduna, Kano, and Jos DisCos remained the weakest performers. Kaduna recorded a recovery efficiency of 43.15 per cent, while Kano and Jos posted 51.87 per cent and 52.48 per cent, respectively.
Gas Shortages Deepen Electricity Crisis as Consumers Demand Better Service
The revenue performance came during one of the most difficult periods for Nigeria's electricity sector, as widespread gas shortages significantly reduced power generation.
Several thermal power plants either shut down or operated below capacity due to inadequate gas supply, causing national electricity generation to fall from around 4,000 megawatts to below 2,000MW at certain periods. The shortage forced the Transmission Company of Nigeria (TCN) to ration available electricity among distribution companies, resulting in extensive load shedding across the country, particularly in February and March.
Operational data from the Nigerian Independent System Operator (NISO) indicated that thermal power stations require approximately 1,629.75 million standard cubic feet of gas per day to operate efficiently. However, as of February 23, only about 692 million standard cubic feet per day was available—less than 43 per cent of the sector's gas requirement.
Throughout the crisis, distribution companies repeatedly attributed prolonged outages to generation constraints caused by insufficient gas supply.
Although electricity generation and supply began showing signs of improvement toward the end of April, many consumers have continued to complain about high electricity tariffs, estimated billing, poor customer service and unreliable power supply.
Industry stakeholders have also renewed calls for accelerated metering, stronger investment in power infrastructure, reduced energy theft and improved operational efficiency to strengthen the financial health of the electricity distribution sector.
Source: UGC
Meanwhile, the Lagos State Electricity Regulatory Commission (LASERC) has reminded consumers that electricity distribution companies are prohibited from recovering electricity charges that are more than 12 months old, except in cases involving meter tampering, illegal electricity consumption or obstruction of meter reading.
The commission, in a consumer awareness advisory published on its official social media platforms, urged electricity users to understand their rights, stressing that customers should not be compelled to pay bills older than one year unless they fall within the recognised exceptions provided by the regulations.
Source: Legit.ng
