Nigeria’s electricity distribution companies (DisCos) recorded losses of about N310 billion in the first quarter of 2026 due to unbilled electricity and poor revenue collection, highlighting ongoing challenges in the country’s power sector.
According to commercial performance reports released by the Nigerian Electricity Regulatory Commission (NERC), the 11 electricity distribution companies received electricity worth over N907 billion between January and March 2026. However, a significant portion of the supplied energy was never billed to customers, while many billed customers failed to pay for the electricity they consumed.
The report showed that total losses during the three-month period reached N309.73 billion. This figure consisted of N150.36 billion worth of electricity that was not billed and N159.37 billion in unpaid electricity bills.
In January, the DisCos received electricity valued at N336.43 billion. Customers were billed N268.20 billion, leaving N68.23 billion worth of electricity unaccounted for. Out of the amount billed, only N204.74 billion was successfully collected, resulting in N63.46 billion in unpaid bills.
The month recorded a billing efficiency of 79.72 percent and a collection efficiency of 76.34 percent. Overall revenue recovery efficiency stood at 69.16 percent, indicating that a large portion of expected revenue was lost.
Performance improved slightly in February. Electricity worth N277.09 billion was supplied to the distribution companies, while customers were billed N242.29 billion. This left N34.80 billion worth of electricity unbilled. Revenue collection reached N196.68 billion, while N45.61 billion remained unpaid.
NERC reported that billing efficiency increased to 87.44 percent, while collection efficiency rose to 81.17 percent. Revenue recovery efficiency climbed to 80.67 percent, making February the best-performing month of the quarter.
In March, the value of electricity supplied increased to N293.76 billion. Customers received bills worth N246.43 billion, leaving N47.33 billion worth of electricity unbilled. The companies collected N196.13 billion, while N50.30 billion remained outstanding.
Billing efficiency for March stood at 83.89 percent, while collection efficiency was recorded at 79.59 percent. Revenue recovery efficiency reached 81.05 percent.
Overall, the electricity distributors billed customers N756.92 billion out of the N907.28 billion worth of electricity received. They eventually collected N597.55 billion, leaving a substantial gap in expected revenue.
The report also revealed differences in performance among the distribution companies. Eko and Ikeja DisCos emerged among the strongest performers. Eko DisCo even achieved a revenue recovery rate above 100 percent in February after recovering outstanding debts from previous periods.
On the other hand, Kaduna Electricity Distribution Company ranked among the weakest performers, recording a revenue recovery efficiency of just 41.20 percent in February. Jos and Yola DisCos also struggled across several performance indicators.
Industry stakeholders say inadequate metering, electricity theft, meter bypass, weak enforcement, and poor payment culture continue to worsen the sector’s liquidity crisis. These issues reduce the cash available to generation companies, transmission operators, and other participants in the electricity market.
Adding to the concerns, the Nigerian Independent System Operator recently disclosed that about 180 megawatts of electricity were being lost through energy theft along the Ikorodu-Sagamu transmission corridor covering parts of Lagos and Ogun states. Investigations reportedly uncovered widespread meter manipulation and illegal electricity consumption involving some large customers.
Experts believe addressing energy theft, improving metering, and strengthening revenue collection systems will be crucial to improving the financial health and sustainability of Nigeria’s electricity sector.
