Nigeria’s electricity distribution companies (DisCos) lost about N309.73 billion in the first quarter of 2026 due to unbilled energy and poor revenue collection, according to data from the Nigerian Electricity Regulatory Commission (NERC).
An analysis of NERC’s commercial performance factsheets showed that the 11 DisCos collectively received electricity worth over N907 billion during the three-month period but failed to fully bill customers and collect payments for energy supplied.
The losses comprised N150.36 billion in unbilled energy and N159.37 billion in uncollected revenue from already issued bills.
In January alone, the DisCos received energy valued at N336.43 billion. Out of this, N268.20 billion was billed to customers, leaving N68.23 billion unbilled.
However, only N204.74 billion was recovered from the billed amount, resulting in N63.46 billion in unpaid bills for the month.
Despite the financial shortfalls, NERC reported improvements in key performance indicators across the sector.
Billing efficiency rose to 87.44 per cent during the quarter, while collection efficiency increased to 81.17 per cent. Overall revenue recovery efficiency stood at 80.67 per cent, which the regulator described as the highest recorded within the period under review.
The figures highlight ongoing structural and operational challenges in Nigeria’s electricity distribution sector, including metering gaps, technical losses, and weak enforcement of payment compliance.
Energy analysts note that while efficiency gains are being recorded, persistent liquidity constraints continue to undermine the financial sustainability of the power sector.
NERC has repeatedly emphasized the need for improved metering infrastructure, stricter revenue enforcement, and operational reforms to reduce losses and improve service delivery across the electricity value chain.
The latest data underscores the gap between energy supplied and revenue recovered, a challenge that continues to affect investments and reliability in Nigeria’s electricity market.
