N600bn Revenue for Nigerian DisCos Amid Persistent Power Outages

The Nigerian Electricity Regulatory Commission, NERC, has released its latest commercial performance data, revealing that the country's 11 Electricity Distribution Companies, DisCos, generated a total of N597.55 billion in revenue during the first quarter of 2026. Despite the significant earnings, the power sector continues to grapple with challenges, including frequent blackouts and high electricity tariffs. According to the NERC data, the DisCos recorded N204.74 billion in revenue in January, N196.68 billion in February, and N196.13 billion in March, resulting in an average monthly collection of approximately N199.18 billion. The report also showed that the DisCos experienced mixed commercial performance, with varying levels of billing efficiency, collection efficiency, and revenue recovery during the quarter. For instance, in January, the companies billed customers a total of N268.20 billion but collected only N204.74 billion, leaving N63.46 billion in unpaid bills. The billing efficiency for the month stood at 79.72 per cent, while the collection efficiency was 76.34 per cent. In February, total billings reached N242.29 billion, with collections amounting to N196.68 billion, resulting in N45.61 billion in uncollected revenue. The month posted improved billing efficiency of 87.44 per cent and collection efficiency of 81.17 per cent. The reports further indicated significant volumes of unbilled energy throughout the quarter, highlighting persistent operational challenges within the electricity distribution segment. Among the strongest performers were Eko Electricity Distribution Company and Ikeja Electric, which consistently recorded higher revenue recovery rates. Eko DisCo notably achieved a recovery efficiency of more than 100 per cent in February. In contrast, some companies continued to struggle with collections, with Kaduna Electricity Distribution Company recording one of the lowest recovery rates during the period, posting a recovery efficiency of 41.20 per cent in February. The NERC data tracks key industry indicators, including energy received, energy billed, total billings, revenue collections, and recovery efficiency, providing insight into the commercial viability of the privatised electricity distribution companies. The revenue figures come amid continued complaints from consumers over high electricity tariffs, frequent outages, and poor service delivery. Nigeria also faced a prolonged power supply challenge during the first quarter of the year, largely driven by gas supply constraints that caused electricity generation to fall significantly, at times dropping from about 4,000 megawatts to below 2,000 megawatts. Industry stakeholders have repeatedly called for improved metering, stronger measures against energy theft, and enhanced customer service to improve collection rates and overall sector performance. Operational data from the Nigerian Independent System Operator showed that thermal power plants require approximately 1,629.75 million standard cubic feet of gas per day to operate at optimal capacity. However, as of February 23, 2026, actual gas supply stood at about 692 million standard cubic feet per day, representing less than 43 per cent of required demand. The reduction in gas supply forced several power plants to shut down, while the Transmission Company of Nigeria implemented load-shedding measures to distribute limited electricity generation among distribution companies. DisCos have repeatedly attributed service disruptions to gas shortages, although some consumers have reported improvements in electricity supply in recent weeks.