Photo caption: Nigerian Electricity Regulatory Commission logo
Nigeria’s electricity distribution companies lost about N310bn in the first quarter of 2026 due to unbilled energy and poor revenue collection, according to an analysis of commercial performance factsheets released by the Nigerian Electricity Regulatory Commission.
The reports showed that despite receiving electricity worth over N907bn during the three-month period, the 11 electricity distribution companies failed to bill a significant portion of the energy supplied to them and were unable to collect all revenues from customers who were billed.
The data indicated that cumulative losses from unbilled energy and uncollected bills reached N309.73bn in the first quarter, comprising N150.36bn in unbilled energy and N159.37bn in uncollected revenue.
In January, the DisCos received energy valued at N336.43bn. Of this amount, they billed customers N268.20bn, leaving N68.23bn worth of electricity unbilled. However, the firms collected only N204.74bn from the N268.20bn billed, resulting in N63.46bn in uncollected revenue.
The month recorded a billing efficiency of 79.72 per cent and a collection efficiency of 76.34 per cent, translating to a revenue recovery efficiency of 69.16 per cent.
Performance improved slightly in February as the DisCos received energy worth N277.09bn. They billed N242.29bn, leaving N34.80bn worth of energy unbilled. Out of the billed amount, N196.68bn was collected, while N45.61bn remained outstanding.
According to NERC, billing efficiency rose to 87.44 per cent, while collection efficiency improved to 81.17 per cent. Overall revenue recovery efficiency stood at 80.67 per cent, the highest recorded during the quarter.
In March, the value of energy received by the DisCos increased to N293.76bn. The companies billed customers N246.43bn, leaving N47.33bn worth of energy unbilled. Revenue collection stood at N196.13bn, resulting in N50.30bn in uncollected bills.
Billing efficiency for the month was 83.89 per cent, and collection efficiency stood at 79.59 per cent, while revenue recovery efficiency was 81.05 per cent.
Overall, the DisCos received energy valued at N907.28bn during the first quarter, billed N756.92bn and collected N597.55bn, indicating that customers owed the DisCos N159.37bn in new uncollected bills across the three months.
The reports showed significant differences in operational performance among the distribution companies.
Eko and Ikeja electricity distribution companies consistently recorded some of the strongest results during the quarter. Eko DisCo, in particular, achieved a revenue recovery efficiency of more than 100 per cent in February, indicating collections exceeded billings for the month due to the recovery of outstanding debts.
In contrast, Kaduna Electricity Distribution Company remained among the weakest performers, recording a recovery efficiency of just 41.20 per cent in February. Jos and Yola DisCos also ranked among the poorest-performing operators across several performance indicators.
The findings underscore the persistent commercial challenges facing the distribution segment of Nigeria’s power sector, more than a decade after privatisation.
Stakeholders have repeatedly identified inadequate metering, energy theft, meter bypass, weak enforcement and poor collection mechanisms as major factors behind the sector’s liquidity crisis.
The losses continue to affect the entire electricity value chain, limiting cash flow to generation companies, transmission operators and other market participants.
Recently, the Nigerian Independent System Operator raised the alarm over what it described as massive electricity theft on the Ikorodu-Sagamu transmission corridor spanning Lagos and Ogun states, saying about 180 megawatts of power was lost to energy theft perpetrated by large customers.
The Managing Director of NISO, Abdu Mohammed Bello, disclosed this during a stakeholders’ meeting held in Lagos with distribution companies, generation companies, eligible customers, and large customers connected to the Ikorodu-Sagamu 132kV double-circuit transmission lines.
Bello said investigations by the system operator uncovered widespread electricity theft and meter manipulation along the transmission corridor, with some large customers connected to the Ikeja Electricity Distribution Company and the Ibadan Electricity Distribution Company implicated.
According to him, the level of losses recorded on the line was alarming and had become a major threat to grid stability and market revenues.
“We discovered that the Ikorodu-Sagamu 132kV double-circuit line has a lot of very serious theft issues. The magnitude of the thefts is unimaginable. The theft along that line is close to 180MW. So you can imagine losing 180MW, which is almost equivalent to the daily allocation of Jos Electricity Distribution Company,” Bello said.
He explained that the discovery prompted consultations with the Nigerian Electricity Regulatory Commission, which subsequently backed NISO’s move to tackle the menace.
“So we decided to carry out investigations, and based on our findings, we consulted the regulator of the power sector, the Nigerian Electricity Regulatory Commission, and we made a presentation to them. They saw the magnitude of it and now supported us in that we should take further steps towards addressing this serious menace in the system,” he stated.
