Nigeria’s electricity distribution companies (DisCos) recorded a revenue shortfall of N63.46 billion in January 2026 as recovery efficiency declined to 69.16 per cent, according to the latest Commercial Performance Factsheet released by the Nigerian Electricity Regulatory Commission.
The report showed that out of N268.2 billion billed to electricity consumers during the month, only N204.74 billion was recovered, leaving a substantial gap that continues to strain liquidity across the power sector.
The drop in revenue recovery comes as the Commission implemented stricter Aggregate Technical, Commercial and Collection (ATC&C) loss targets for 2026. The new benchmark reduces the industry’s average allowable losses to 16.92 per cent from 20.54 per cent in 2025, a move aimed at compelling DisCos to improve operational efficiency following investments made in the previous year.
Despite the higher performance expectations, recovery efficiency declined by 3.15 percentage points compared to the same period last year. The report also showed a significant disparity between the allowed average electricity tariff of N124.30 per kilowatt-hour (kWh) and the actual average collection of N85.97/kWh.
Analysts say the gap highlights a persistent structural challenge within Nigeria’s electricity market, where not all energy supplied to customers is accurately billed or fully paid for.
Operational data further revealed that DisCos received electricity valued at N336.43 billion in January but billed only N268.2 billion, translating to a billing efficiency of 79.72 per cent. Collection efficiency was slightly lower at 76.34 per cent, reflecting ongoing issues including metering gaps, energy theft, and weak payment compliance among consumers.
A regional breakdown of performance showed wide disparities among operators.
Eko Electricity Distribution Company recorded the highest recovery efficiency at 87.92 per cent, followed by Ikeja Electric with 81.64 per cent, both maintaining relatively strong billing and collection performance.
However, several utilities in the northern region reported significantly weaker outcomes. Kaduna Electric posted the lowest recovery efficiency at 36.29 per cent, while Jos Electricity Distribution Company recorded 43.54 per cent, reflecting persistent commercial and infrastructure constraints.
The sharpest deterioration was observed at Yola Electricity Distribution Company, where recovery efficiency fell by 14.85 percentage points to 55.42 per cent. This decline occurred despite a major reduction in its ATC&C loss target from 44 per cent in 2025 to 29 per cent in 2026, the steepest adjustment among all DisCos.
According to the Commission, the revised loss targets were introduced to reflect the expected impact of capital investments made by distribution companies in 2025, including network upgrades, expanded metering infrastructure, and improved energy accounting systems designed to curb technical and commercial losses.
Other operators also recorded weaker performance. Abuja Electricity Distribution Company reported recovery efficiency of 75.02 per cent, while Benin Electricity Distribution Company and Enugu Electricity Distribution Company posted 63.46 per cent and 63.17 per cent respectively.
Similarly, Ibadan Electricity Distribution Company recorded 57.72 per cent, Kano Electricity Distribution Company posted 57.61 per cent, while Port Harcourt Electricity Distribution Company achieved 73.9 per cent.
Industry observers note that the across-the-board decline suggests the tighter regulatory targets may be exposing underlying weaknesses in revenue assurance and customer compliance across the electricity distribution network.
The implications extend beyond the distribution segment. Revenue shortfalls at the DisCo level reduce remittances to upstream players, including the Nigerian Bulk Electricity Trading Plc and generation companies, thereby sustaining the long-standing liquidity challenges within Nigeria’s electricity value chain.
