Nigeria’s electricity distribution companies (DisCos) recorded about ₦301 billion in billed electricity revenue that was not collected between January and June 2026, but the gap does not mean customers simply refused to pay. Kaduna Electricity Distribution Plc (KAEDC), where less than half of billed revenue was collected, shows how metering gaps, estimated-billing disputes, electricity losses and weak collection can overlap.

Commercial performance data published by the Nigerian Electricity Regulatory Commission (NERC) show that the 11 DisCos billed customers about ₦1.502 trillion during the first half of 2026 and collected roughly ₦1.2 trillion. The difference was about ₦301 billion, representing approximately 20% of the amount billed. NERC’s commercial-performance framework measures collection efficiency by comparing revenue collected with revenue billed.

KAEDC was among the weakest performers. It billed customers ₦63.29 billion during the period but collected ₦30.93 billion, putting its collection efficiency at about 48.9%. That left roughly ₦32.36 billion in billed revenue uncollected.

The figures should not, however, be interpreted as proof that households simply chose not to pay. NERC has previously linked payment performance to factors including customers’ willingness and ability to pay, service quality and inadequate metering.

Metering is particularly important in Kaduna. In August 2026, NERC said KAEDC’s customer metering coverage was below 36%, meaning most customers in its franchise area were still without individual meters. The regulator also said KAEDC recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88% in 2025. That means only about 28% of energy received was ultimately accounted for after the losses covered by the measure.

The metering deficit also leaves many customers dependent on estimated billing, making billing accuracy a key issue in collection. NERC has previously taken action against DisCos over estimated-billing violations. In March 2024, the regulator sanctioned 11 DisCos after finding non-compliance with approved energy caps for unmetered customers. It ordered credit adjustments for affected customers overbilled between January and September 2023 and imposed a total revenue deduction of ₦10.505 billion.

NERC’s rules also provide protections for metered customers and establish limits on estimated billing for unmetered customers. This means billing disputes can form part of the collection challenge, although NERC’s data does not quantify how much of the ₦301 billion shortfall is attributable to disputed bills.

Electricity theft and illegal connections add another layer. ATC&C losses include technical, commercial and collection losses. Commercial losses can arise from issues such as energy theft and illegal connections, while collection losses relate to electricity that has already been billed but not paid for. These categories should therefore not be treated as interchangeable or added directly to the ₦301 billion billed-versus-collected gap.

The scale of KAEDC’s wider financial problems was also highlighted by NERC in August. The regulator said the company had accumulated about ₦456.5 billion in total market obligations as of May 2026, including more than ₦118.6 billion in additional debt linked to its core investor, ASI Engineering Limited. NERC also said KAEDC invested ₦2.48 billion against a required ₦24.51 billion in capital expenditure.

NERC subsequently dissolved KAEDC’s board and appointed an interim board to address the company’s financial and operational problems, including its high ATC&C losses and significant metering deficit. The intervention took effect on August 10, 2026.

The Kaduna case therefore complicates the headline around the ₦301 billion gap. The shortfall reflects the difference between what DisCos billed and what they collected, but NERC’s data does not establish precise shares attributable to customers’ inability or unwillingness to pay, disputed bills, metering gaps, electricity theft or weak collection systems.

Kaduna is an extreme case rather than a picture of every DisCo. Its low collection efficiency and exceptionally high losses show that improving revenue collection requires more than demanding payment: customers need accurate billing and reliable metering, while DisCos must also reduce losses, improve collection and strengthen their networks.