Nigeria’s electricity distribution companies, known as DisCos, did better in revenue collection in April 2026. But many billing problems and revenue recovery issues still hurt the power sector's future.
This is the main point from the latest performance report released by the Nigerian Electricity Regulatory Commission(NERC) on Tuesday.
The report shows that the 11 electricity distribution companies together received electricity worth ₦302.96 billion in April. However, they billed customers ₦252.43 billion. This means the national billing efficiency stands at 83.32%.
According to the report, energy received went up by 3.13% compared to March. Energy billed also increased by 2.43%. Still, billing efficiency fell slightly by 0.57 percentage points. This indicates that a larger part of the available electricity is unbilled.
Better revenues; improved performance
The report states that DisCos collected ₦203.61 billion from the ₦252.43 billion billed. NERC noted that this shows a collection efficiency of 80.66%, which is an improvement of 1.07 percentage points over March.
As a result, average revenue recovered rose to ₦102.13 per kilowatt-hour, while the regulator's allowed average tariff is ₦124.39 per kilowatt-hour. This means a national revenue recovery efficiency of 82.11%, also better than the previous month.
While these numbers suggest some improvement, they also show that almost one-fifth of electricity bills across Nigeria were unpaid during the month.
Eko Electricity Distribution Company and Port Harcourt Electricity Distribution Company did better than NERC’s revenue recovery goal of 80%. Eko DisCo was the top performer, achieving 91.56% in billing and 94.26% in collection efficiencies. Its revenue recovery efficiency was 102.09%, meaning the company earned more than the benchmark for each unit of electricity.
Port Harcourt DisCo followed with a recovery efficiency of 90.39%, backed by a collection efficiency of 91.41%. Benin (86.65%), Abuja (89.77%), and Ikeja (88.89%) also showed good revenue recovery but did not match Eko’s results.
Northern DisCos face challenges
The report points out ongoing weaknesses among some distribution companies in northern Nigeria. Kaduna DisCo had the lowest revenue recovery in the country at 43.15%, even with the largest month-on-month improvement in collection efficiency.
Kano recovered only 51.87% of expected revenue. Jos got 52.48%, while Yola reached 65.07%. These numbers show that a large part of the electricity supplied in these areas brings in little commercial value. Collection efficiency was also weak in Kano (49.89%), Kaduna (55.38%), and Jos (58.93%). This means almost half of the bills in some areas remain unpaid.
Mixed results
The report highlights big differences in billing efficiency across the country. Enugu DisCo had the highest billing efficiency at 92.77%, closely followed by Eko at 91.56%. On the other hand, Kaduna billed only 62.81% of the electricity it received, while Yola and Jos achieved 66.35% and 69.50%, respectively. These figures show ongoing metering gaps, energy losses, and operational issues.
Even though national collection efficiency improved, results varied among individual DisCos. Some companies saw a drop in collection performance despite high billing efficiency. For example, NERC noted that Ikeja’s collection efficiency dropped by 6.41 percentage points, while Kano had the largest drop of 21.15 percentage points. Enugu and Ibadan also saw declines. In contrast, Kaduna had the biggest improvement in collection efficiency, increasing by 16.84 percentage points, but its overall performance is still among the weakest in the country.
What do the figures mean?
The April numbers suggest that Nigeria’s electricity distribution sector still faces major challenges, even with slow improvements in revenue collection.
The report shows that billing efficiency is stagnant, with nearly 17% of received electricity unbilled and about 19% of billed revenue uncollected nationwide. Additionally, commercial performance varies widely; only two DisCos met NERC’s 80% revenue recovery goal, while several others collected less than half of expected revenue.
These differences highlight issues like metering gaps, energy theft, weak collections, and operational problems that have long affected the financial health of Nigeria’s electricity market. Even with significant investments in power generation, issues like gas supply shortages, maintenance problems, transmission delays, and an aging grid still limit effective electricity delivery.
Many households and businesses have turned to costly solar systems and generators as alternatives due to supply shortages. Rising fuel prices in recent months, partly due to the conflict in the Middle East, have made these options too expensive for many Nigerians already facing a tough cost-of-living crisis.
Joseph Tegbe, the new Minister of Power, has promised improvements in electricity supply. But he also shared concerns about the immediate possibility of round-the-clock power. Overall, while NERC’s April figures show some improvements in revenue collection across the sector, they point to the significant work ahead for many electricity distributors to achieve financial stability.
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