Nigeria’s electricity distribution sector recorded substantial revenue inflows in the first four months of 2026, even as millions of households and businesses grappled with inconsistent supply, load shedding, and rising complaints over tariffs and estimated billing.
Figures obtained from the Nigerian Electricity Regulatory Commission show that the 11 electricity distribution companies collectively recovered N801.16bn between January and April 2026, highlighting continued commercial activity in the sector despite operational challenges.
Revenue collection stays strong amid supply disruptions
The monthly breakdown indicates relatively stable collections across the period: N204.74bn in January, N196.68bn in February, N196.13bn in March, and N203.61bn in April.
However, these earnings came against a backdrop of persistent electricity shortages driven largely by gas supply constraints that reduced generation capacity and forced widespread rationing.
During the same period, DisCos billed customers N1.01tn, but only N801.16bn was recovered, leaving about N207.77bn unpaid.
Billing efficiency shows gradual fluctuations
In January, the sector billed N268.20bn and collected N204.74bn, resulting in 79.72% billing efficiency and 76.34% collection efficiency, leaving a deficit of N63.46bn.
February saw a slight improvement, with billing dropping to N242.29bn and collections rising proportionally to N196.68bn, pushing efficiency levels to 87.44% (billing) and 81.17% (collection).
March figures reflected a similar trend: N246.43bn billed, N196.13bn collected, and N50.30bn outstanding, with efficiency rates of 83.89% and 79.59% respectively.
By April, billing increased again to N252.43bn, while collections rose to N203.61bn, leaving N48.82bn uncollected. Efficiency metrics stood at 83.32% for billing and 80.66% for collections.
Persistent generation shortfalls worsen supply situation
Electricity supply during the period was heavily constrained by inadequate gas availability, which forced several thermal plants to scale down operations or shut intermittently.
At certain points, national power generation dropped from about 4,000 megawatts to below 2,000MW, prompting the Transmission Company of Nigeria to ration electricity distributed across the grid.
Operational data from the Nigerian Independent System Operator showed that thermal plants require approximately 1,629.75 million standard cubic feet of gas per day to function optimally. However, supply as of February 23 stood at about 692 million standard cubic feet per day, representing less than 43% of required capacity.
Distribution companies consistently attributed outages to these generation constraints, explaining that supply shortfalls—not distribution failure alone—were responsible for the widespread blackouts experienced across the country.
Performance disparities among DisCos
While some electricity distributors maintained relatively strong revenue recovery, others continued to struggle with inefficiencies.
Eko Electricity Distribution Company posted one of the strongest results in April, recording a 102.09% recovery efficiency.
Other high-performing utilities included the Abuja, Ikeja, Port Harcourt, and Benin distribution companies, all of which recorded recovery efficiency above 85%.
In contrast, weaker performers continued to lag significantly. The most challenged operators included:
- Kaduna Electricity Distribution Company – 43.15% recovery efficiency (April)
- Kano Electricity Distribution Company – 51.87%
- Jos Electricity Distribution Company – 52.48%
These disparities underscore ongoing structural and operational inefficiencies within parts of the distribution network.
Consumer concerns persist despite partial supply recovery
Although electricity supply showed gradual improvement toward the end of April, consumer dissatisfaction remained high. Many customers continue to raise concerns about rising tariffs, estimated billing practices, and inconsistent service delivery.
Stakeholders have repeatedly called for improved metering coverage, stronger enforcement against energy theft, and increased investment in infrastructure to stabilize the sector and improve revenue efficiency.
Regulatory stance on old electricity charges
In a related development, the Lagos State Electricity Regulatory Commission has clarified consumer protection rules regarding billing practices.
The regulator stated that electricity providers cannot recover charges older than 12 months, except in specific cases involving fraud or obstruction.
In its consumer advisory message, the commission said:
“Electricity supply licensees cannot recover charges older than 12 months, except in cases of meter tampering, illegal use, and obstruction of meter reading.”
The clarification is part of broader efforts to improve transparency and protect consumers amid ongoing reforms in the electricity market.