Electricity Distribution Companies (DisCos) in Nigeria generated a total of N597.55 billion in revenue during the first quarter of 2026 despite persistent power supply challenges and consumer complaints over service delivery.
Discos
The figures are contained in the latest commercial performance factsheets released by the Nigerian Electricity Regulatory Commission (NERC).
According to the data, the 11 electricity distribution companies collectively recorded N204.74 billion in revenue in January, N196.68 billion in February and N196.13 billion in March, bringing total collections for the three-month period to N597.55 billion.
The report showed that the companies maintained an average monthly revenue collection of about N199.18 billion during the period.
NERC’s data revealed varying levels of commercial performance among the distribution companies, with differences in billing efficiency, collection efficiency and revenue recovery rates.
In January, the DisCos billed customers N268.20 billion and recovered N204.74 billion, leaving N63.46 billion in unpaid bills.
The sector recorded a billing efficiency of 79.72 per cent and a collection efficiency of 76.34 per cent during the month.
In February, total billings stood at N242.29 billion, while collections amounted to N196.68 billion, resulting in an outstanding balance of N45.61 billion.
Billing efficiency improved to 87.44 per cent, while collection efficiency rose to 81.17 per cent.
For March, total billings reached N246.43 billion, with revenue collections of N196.13 billion, leaving a shortfall of N50.30 billion.
Billing and collection efficiencies for the month were recorded at 83.89 per cent and 79.59 per cent respectively.
The report also highlighted significant volumes of unbilled energy across the quarter, indicating ongoing operational and commercial challenges within the electricity distribution segment.
Among the top-performing firms were Eko Electricity Distribution Company and Ikeja Electric, which consistently posted stronger revenue recovery rates.
Eko DisCo notably achieved a recovery efficiency of over 100 per cent in February, according to the report.
However, some operators continued to face collection challenges.
Kaduna Electricity Distribution Company recorded one of the lowest recovery efficiencies during the review period, posting 41.20 per cent in February.
The NERC commercial performance report tracks key indicators including energy received, energy billed, total billings, revenue collections and recovery efficiency to assess the operational and financial health of electricity distribution companies.
The revenue performance comes against the backdrop of continued complaints from electricity consumers over high tariffs, estimated billing, inadequate metering and frequent power outages.
Nigeria also experienced significant power supply disruptions during the first quarter, largely attributed to gas supply constraints affecting electricity generation.
Industry data indicated that electricity generation at some points declined from about 4,000 megawatts to below 2,000 megawatts due to shortages in gas supply to thermal power plants.
Operational data from the Nigerian Independent System Operator showed that thermal plants require about 1.63 billion standard cubic feet of gas daily to operate optimally.
However, actual gas supply as of Feb. 23, 2026, stood at approximately 692 million standard cubic feet per day, representing less than 43 per cent of required demand.
The shortfall forced several generating plants to reduce output or shut down operations, prompting the Transmission Company of Nigeria (TCN) to implement load-shedding measures across the national grid.
Industry stakeholders have continued to advocate improved metering, stronger measures against energy theft and enhanced customer service to improve sector efficiency and revenue collection.
