DisCos Improve Efficiency but Lose N8bn Revenue, NERC Reports

Electricity distribution companies (DisCos) have recorded improved efficiency in February 2026 but still suffered a ₦8bn revenue decline, indicating persistent weaknesses in the sector’s commercial framework.

According to a new NERC factsheet, total energy received by the 11 DisCos rose to ₦277.09bn, up 17.64% from January. Yet billings fell to ₦242.29bn, a 9.66% drop, showing gaps in energy accounting and customer enumeration.

Billing efficiency improved to 87.44%, up from 79.72% in January, while collection efficiency rose to 81.17%, reflecting better conversion of invoices into cash.

Despite these gains, total collections fell to ₦196.68bn, down 3.94% month-on-month. NERC noted that “overall revenue recovery efficiency rose to 80.67 per cent, an increase of 11.51 percentage points.”

Tariff realisation also improved, with average collections per kilowatt-hour rising to ₦100.27, though still below the allowed tariff of ₦124.30/kWh, leaving a gap between cost-reflective tariffs and actual payments.

Performance varied across utilities: Eko, Kano, and Abuja DisCos posted the highest billing efficiencies (97.20%, 99.04%, and 93.70%), while Yola and Kaduna lagged at 66.09% and 72.46%. On collections, Eko led with 94.12%, while Kaduna trailed at 49.27%.

In recovery, Eko achieved 100.67% efficiency, exceeding tariff benchmarks, while Kaduna recorded the weakest at 41.20%.

NERC said reduced ATC&C loss targets averaging 16.64% have been approved for 2026, reflecting expected investment impacts.

Experts warn that without wider metering, stronger enforcement against theft, and better tariff alignment, efficiency gains may not translate into financial stability.