Nigeria’s electricity distribution companies (DisCos) generated close to N600 billion in revenue during the first three months of 2026, despite continued complaints from consumers over poor power supply and frequent outages.
Data released by the Nigerian Electricity Regulatory Commission (NERC) showed that the 11 electricity distribution firms collectively collected N597.55 billion between January and March. Monthly collections stood at N204.74 billion in January, N196.68 billion in February, and N196.13 billion in March.
Although revenue remained strong, the sector continued to struggle with significant losses arising from unpaid bills and operational inefficiencies. In January alone, DisCos billed customers N268.20 billion but recovered only N204.74 billion, leaving more than N63 billion outstanding. Similar gaps were recorded in February and March, with uncollected revenues of N45.61 billion and N50.30 billion respectively.
NERC’s performance reports revealed differing levels of efficiency among the distribution companies. Eko Electricity Distribution Company and Ikeja Electric emerged among the strongest performers, recording high revenue recovery rates. Eko DisCo notably exceeded full recovery efficiency in February.
However, some operators continued to face difficulties in revenue collection. Kaduna and Jos distribution companies remained among the weakest performers, with Kaduna recording one of the lowest recovery rates during the period.
The reports also highlighted persistent challenges with unbilled energy and revenue leakages, issues that continue to affect the financial health of the electricity market.
The strong revenue figures come against the backdrop of widespread dissatisfaction among consumers, many of whom have criticised rising electricity tariffs amid unreliable power supply.
Nigeria’s power sector faced severe generation constraints during the first quarter of the year as shortages in gas supply reduced electricity output. At several points, national generation fell below 2,000 megawatts, significantly lower than normal levels.
According to operational data from the Nigerian Independent System Operator, thermal power plants required approximately 1.63 billion standard cubic feet of gas daily to operate efficiently. However, actual supply in February was less than half of that requirement, limiting electricity generation across the country.
The shortage forced some power plants to shut down while the Transmission Company of Nigeria implemented load management measures to distribute the limited available electricity among the distribution companies.
Industry stakeholders have continued to advocate for wider deployment of prepaid meters, stricter measures against energy theft, and improved customer service to enhance revenue collection and overall sector performance.
While distribution companies have repeatedly attributed service disruptions to gas supply challenges, some consumers have reported gradual improvements in electricity supply in recent weeks.
