Nigerian Electricity Distribution Companies Report Enhanced Revenue Collection Amid Ongoing Challenges
Nigerian electricity distribution companies (DisCos) showed improvements in revenue collection for April 2026. However, significant inefficiencies in billing processes continue to jeopardize the long-term sustainability of the power sector.
This assessment comes from the latest performance fact sheet released by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday.
The report revealed that 11 electricity distribution companies billed a total of ₦252.43 billion after receiving ₱302.96 billion worth of electricity, leading to a national billing efficiency of 83.32%. Compared to March, the electricity received increased by 3.13%, and the electricity billed rose by 2.43%. However, the slight decrease in billing efficiency by 0.57% suggests that a considerable amount of available electricity remains unbilled.
Revenue Collection Reflects Gradual Improvement
The report indicates that DisCos recovered ₦203.61 billion from the billed amount of ₦252.43 billion, achieving a collection efficiency of 80.66%. This marks an improvement of 1.07 percentage points from March. Consequently, the average revenue collected reached ₦102.13 per kilowatt-hour, although this falls short of the regulator’s allowed average rate of ₦124.39 per hour. Overall, the national revenue collection efficiency improved to 82.11% compared to the previous month.
While these statistics point to gradual commercial improvements, they also highlight the fact that nearly one-fifth of issued electricity bills remain unpaid nationwide. Eko Power Distribution Company and Port Harcourt Power Distribution Company surpassed NERC’s revenue recovery target of 80%. Eko DisCo emerged as the top performer, boasting billing and collection efficiencies of 91.56% and 94.26%, respectively, while exceeding revenue collection efficiency at 102.09%. This impressive performance indicates that Eko collected more revenue per unit of electricity than regulators’ benchmarks, reflecting effective billing and collection operations.
Port Harcourt DisCo followed closely with a collection efficiency of 90.39% and a billing efficiency of 91.41%. Other notable performers include Benin (86.65%), Abuja (89.77%), and Ikeja (88.89%), although they remain behind Eko in terms of overall revenue recovery.
Northern DisCos Face Significant Challenges
The fact sheet identifies stark weaknesses among certain distribution companies in northern Nigeria. Despite achieving the highest month-on-month improvement in collection efficiency, Kaduna DisCo reported the lowest revenue recovery rate in the country at just 43.15%. Additionally, Kano only managed to collect 51.87% of its anticipated revenue, while Jos and Yola recorded 52.48% and 65.07%, respectively. These figures reveal that a considerable portion of the electricity supplied in these regions generates minimal commercial value. Collection efficiency in Kano (49.89%), Kaduna (55.38%), and Jos (58.93%) underscores the challenges with unpaid invoices in these areas.
Variability in Financial Performance
The report uncovers significant discrepancies in billing efficiency across the country. Enugu DisCo led with a billing efficiency of 92.77%, closely followed by Eko at 91.56%. In contrast, Kaduna achieved a mere 62.81% of the electricity billed, while Yola and Jos recorded efficiencies of 66.35% and 69.50%, respectively. These numbers reflect ongoing metering gaps, energy losses, and operational shortcomings impacting service delivery.
Despite improvements in national collection efficiency, performance across individual DisCos has been mixed. Some companies have exhibited poor collection performance despite relatively strong billing efficiencies. For instance, Ikeja saw a decline of 6.41 percentage points in collection efficiency, while Kano experienced a significant drop of 21.15 percentage points. Conversely, Kaduna reported an increase of 16.84 percentage points, though it still maintained the lowest overall performance in the country.
Understanding the Sector’s Challenges
The figures from April suggest that Nigeria’s electricity distribution sector is grappling with persistent structural challenges, even as revenue collection shows signs of gradual improvement. The report indicates that approximately 17% of received electricity remains unbilled, while around 19% of billed revenue goes uncollected. Furthermore, the variation in commercial performance across different DisCos is striking, with only two surpassing NERC’s revenue recovery benchmark of 80%. A significant number of operators are only recovering half of their expected revenue.
These discrepancies reflect issues such as meter shortages, energy theft, ineffective collection practices, and operational inefficiencies that have long hampered the financial stability of Nigeria’s electricity market. Despite continued investments in power generation infrastructure, challenges such as gas supply constraints, maintenance concerns, transmission issues, and aging grid infrastructure hinder the effective delivery of electricity.
