Nigeria’s electricity distribution companies recorded about N310 billion in losses during the first three months of 2026, driven by gaps in billing and difficulties in recovering payments from customers, according to data from the Nigerian Electricity Regulatory Commission (NERC).
Figures from NERC’s latest commercial performance reports showed that the 11 electricity distribution companies received power worth more than N907 billion between January and March. However, a large portion of this supply was either not billed to consumers or not paid for after billing.
Out of the total losses recorded in the period, about N150.36 billion came from electricity that was supplied but not billed, while N159.37 billion resulted from unpaid invoices issued to customers. This brought total sector losses to N309.73 billion.
In January, electricity worth N336.43 billion was supplied to the DisCos. They billed customers N268.20 billion, but over N68 billion worth of electricity was not captured in billing. Collections stood at N204.74 billion, leaving a shortfall of more than N63 billion.
February showed some improvement in efficiency. The DisCos received electricity valued at N277.09 billion and billed N242.29 billion. Of the billed amount, N196.68 billion was recovered, while N45.61 billion remained unpaid.
In March, power supply rose to N293.76 billion. The companies billed N246.43 billion and collected N196.13 billion, leaving over N50 billion outstanding.
Overall, the sector billed N756.92 billion out of electricity worth N907.28 billion within the quarter and collected N597.55 billion, highlighting persistent revenue leakages.
Performance across the distribution companies varied significantly. Firms such as Eko and Ikeja DisCos performed relatively better, with Eko even recording instances where recovered debts pushed its collection above billing levels in February.
However, Kaduna Electricity Distribution Company was among the weakest performers, recording low recovery efficiency during the period. Jos and Yola DisCos also struggled with revenue collection across multiple months.
Industry experts continue to point to issues such as weak metering systems, electricity theft, bypassed meters, and poor enforcement as key factors affecting the financial stability of the power sector.
The losses are further straining Nigeria’s electricity value chain, limiting funds available to generation and transmission companies.
Recent investigations by the Nigerian Independent System Operator also revealed large-scale electricity theft along the Ikorodu–Sagamu transmission corridor, with about 180 megawatts reportedly lost to illegal consumption and meter manipulation. The operator warned that such practices pose a serious risk to grid stability and revenue collection across the sector.
