DisCos Collect ₦204bn, Lose ₦131bn in January

Nigeria’s electricity distribution companies (DisCos) collected ₦204.74bn in January 2026, representing a 76.34% collection efficiency, but still recorded losses of over ₦131bn due to billing and collection gaps.

According to the Nigerian Electricity Regulatory Commission (NERC), customers failed to pay ₦63.46bn in bills, while inefficiencies across the value chain left a significant revenue shortfall.

The January 2026 Commercial Performance Factsheet showed that out of ₦336.43bn worth of energy received, only ₦268.20bn was billed, reflecting a billing efficiency of 79.72%. Actual cash recovered stood at ₦204.74bn.

NERC noted that while the allowed average tariff was ₦124.30/kWh, actual collections averaged ₦85.97/kWh, resulting in a revenue recovery efficiency of 69.16%, down by 8.1 percentage points compared to December 2025.

Performance varied widely among the 11 DisCos. Eko Electricity Distribution Company led with 87.92% recovery efficiency, followed by Ikeja Electric at 81.64%.

Abuja and Port Harcourt DisCos posted around 75%, while Kaduna and Jos lagged at 36.29% and 43.54%, respectively.

NERC highlighted persistent Aggregate Technical, Commercial, and Collection (ATC&C) losses, with stronger performers like Eko and Ikeja posting the lowest loss targets, while weaker firms such as Jos, Kaduna, and Yola struggled with high inefficiencies and energy theft.

To strengthen efficiency, NERC approved a downward review of ATC&C loss targets for 2026, setting an industry average of 16.92%, down from 20.54% in 2025. Yola DisCo received the biggest reduction, from 44% to 29%.

Despite these reforms, January’s performance fell short, underscoring the sector’s persistent liquidity crisis.

NERC said closing the gap between energy delivered and revenue realised remains critical to stabilising Nigeria’s electricity market.