Nigerian DisCos Rake In Nearly N600bn in Q1 Despite Power Supply Challenges

Electricity Distribution Companies (DisCos) in Nigeria generated a combined N597.55 billion from customers in the first quarter of 2026, according to the latest commercial performance data released by the Nigerian Electricity Regulatory Commission (NERC). The figure, covering January to March, translates to an average monthly revenue of approximately N199.18 billion, underscoring the sector’s ability to sustain collections despite persistent operational challenges.

NERC's data shows that the DisCos collected N204.74 billion in January, N196.68 billion in February, and N196.13 billion in March. However, significant revenue gaps remained throughout the quarter. In January, total billings stood at N268.20 billion, leaving N63.46 billion uncollected. February recorded billings of N242.29 billion with a shortfall of N45.61 billion, while March posted N246.43 billion in billings and N50.30 billion in uncollected revenue.

Commercial efficiency varied across the 11 distribution companies. January recorded a billing efficiency of 79.72 per cent and collection efficiency of 76.34 per cent. Performance improved in February, with billing efficiency rising to 87.44 per cent and collection efficiency reaching 81.17 per cent. In March, billing and collection efficiencies stood at 83.89 per cent and 79.59 per cent respectively, while substantial volumes of energy remained unbilled throughout the period.

Among the stronger performers, Eko DisCo and Ikeja DisCo consistently recorded higher revenue recovery rates, with Eko DisCo surpassing 100 per cent recovery efficiency in February. On the other hand, Kaduna and Jos DisCos continued to face difficulties in revenue collection. Kaduna DisCo, for instance, recorded a recovery efficiency of only 41.20 per cent in February, one of the lowest figures reported during the quarter.

The NERC factsheets, which track energy received, energy billed, total billings, revenue collections and recovery efficiency, highlight the ongoing commercial realities facing Nigeria’s privatised electricity distribution companies. Consumers, meanwhile, have continued to complain about high electricity tariffs, frequent power outages and inadequate service delivery, particularly during a quarter marked by severe generation shortfalls.

The power crisis was largely driven by gas supply constraints that reduced electricity generation from about 4,000 megawatts to below 2,000MW at certain periods. Data from the Nigerian Independent System Operator showed that thermal power plants required about 1,629.75 million standard cubic feet of gas daily to operate optimally, but actual supply as of February 23, 2026, stood at only 692 million standard cubic feet per day less than 43 per cent of demand. The shortage forced some power plants offline and led the Transmission Company of Nigeria to implement load shedding. While DisCos attributed outages to the gas deficit, stakeholders have continued to advocate improved metering, stricter enforcement against energy theft and enhanced customer service, even as some consumers report modest improvements in power supply in recent weeks.


Elijah Adeyemi