DisCos Miss N387bn in Electricity Bills Recovery In 8 Months Amid N1.63trn Collection

Nigeria’s 11 electricity distribution companies collected N1.63 trillion from customers between January and August 2026, but failed to recover N387.19 billion out of the N2.01 trillion billed during the period, according to data from the Nigerian Electricity Regulatory Commission.

The figures, contained in NERC’s latest Commercial Performance Factsheet, show that the DisCos recorded their strongest monthly collection in August, taking in N220.93 billion — a 7.49 per cent increase from N205.53 billion in July. The August figure was also 7.91 per cent higher than the N204.74 billion collected in January.

Collections were uneven across the eight months. Revenue fell from N204.74 billion in January to N196.68 billion in February, and further to N196.13 billion in March, before recovering to N203.61 billion in April and N208.15 billion in May.

June recorded the weakest performance, with collections dropping to N191.68 billion — a decline of N16.47 billion from May. Collections then rebounded to N205.53 billion in July and N220.93 billion in August.

In August, the distribution companies received electricity valued at N346.49 billion but billed customers only N261.10 billion, leaving N85.39 billion worth of energy unbilled. This put billing efficiency at 75.36 per cent, a marginal improvement from 75.10 per cent in July.

Of the N261.10 billion billed, the DisCos collected N220.93 billion, leaving N40.17 billion unrecovered. Collection efficiency rose to 84.62 per cent from 81.95 per cent in July, indicating that firms recovered a larger share of bills issued, although significant revenue leakage persisted.

Performance varied widely among the distribution companies. Eko Electricity Distribution Company recorded the highest revenue recovery efficiency at 96.29 per cent, followed by Ikeja at 84.22 per cent and Abuja at 83.63 per cent.

Kaduna DisCo recorded the lowest recovery efficiency at 41.90 per cent, followed by Jos at 52.80 per cent and Kano at 60.98 per cent. The disparity underscores uneven commercial performance across the electricity distribution network.

NERC put the industry’s overall revenue recovery efficiency at 77.63 per cent in August, up from 74.91 per cent in July. The average allowed tariff was N130.15 per kilowatt-hour, while actual average collection stood at N101.03 per kilowatt-hour.

The regulator’s data suggests improving cash recovery, but the N387.19 billion shortfall and the N85.39 billion worth of unbilled electricity in August alone highlight continued weaknesses in metering, billing, and revenue collection across the sector.