Nigeria’s electricity distribution companies posted a mixed commercial performance in February 2026, with operational efficiency gains offset by lower billings and cash collections, according to a factsheet released by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday.
The regulator’s data show that total energy received by the 11 distribution companies (DisCos) rose to N277.09 billion in February, a 17.64 percent increase from January’s N235.53 billion. Despite the higher energy intake, billed amounts fell to N242.29 billion, 9.66 percent below the January estimate of N268.08 billion, indicating persisting gaps in energy accounting and customer enumeration.
Operational metrics improved markedly. Billing efficiency climbed to 87.44 percent in February, up 7.72 percentage points from 79.72 percent in January, reflecting a better conversion of received energy into invoices. Collection efficiency also rose, reaching 81.17 percent – an increase of 4.84 percentage points month‑on‑month – suggesting that a larger share of billed energy was being turned into cash.
Nevertheless, total revenue collected declined to N196.68 billion, 3.94 percent less than in January. The average collection per kilowatt‑hour increased to N100.27, a 16.64 percent improvement, but remained below the allowed average tariff of N124.30/kWh, highlighting a continuing shortfall between cost‑reflective tariffs and actual payments.
Performance varied across utilities. Eko, Kano and Abuja DisCos recorded the highest billing efficiencies at 97.20 percent, 99.04 percent and 93.70 percent respectively, while Yola and Kaduna lagged with 66.09 percent and 72.46 percent. In collection efficiency, Eko led with 94.12 percent, followed by Abuja at 89.28 percent; Kaduna posted the lowest figure at 49.27 percent. Regarding revenue recovery, Eko DisCo achieved a recovery efficiency of 100.67 percent, exceeding the tariff benchmark, whereas Kaduna’s recovery stood at 41.20 percent.
An analysis of the month‑over‑month changes shows that energy received increased by N41.56 billion (17.64 percent), billings dropped by N25.79 billion (9.66 percent) and collections fell by N8.09 billion (3.94 percent). The data suggest that, while DisCos are becoming more efficient in billing and collection processes, the sector continues to face weak demand, collection losses and limited customer liquidity.
NERC also noted that reduced ATC&C loss targets, averaging 16.64 percent, have been approved for 2026 to reflect investments made by DisCos in 2025. The commission warned that the February results “demonstrate gradual improvements in commercial efficiency, though significant gaps remain in revenue realisation across the industry.”
The findings underscore a persistent challenge for Nigeria’s power sector: gains in operational efficiency have not yet translated into financial stability. Addressing the shortfall will require broader metering coverage, stronger enforcement against electricity theft, improved power supply reliability and tariff structures that balance cost recovery with consumer affordability.
