Nigeria’s electricity distribution companies faced a fresh setback in January 2026, posting a revenue shortfall of over N63 billion as collection efficiency weakened across the sector.
Data released by the Nigerian Electricity Regulatory Commission shows that DisCos recovered only N204.74 billion out of the N268.2 billion billed to customers, translating to a recovery rate of just over 69 percent. The dip comes despite stricter performance benchmarks introduced for the year.
Operators also struggled with billing efficiency; only about 80% of the electricity supplied was invoiced, while collection efficiency remained somewhat lower.
Deep structural problems exposed by the difference between anticipated tariffs and actual payments include metering deficiencies, energy losses, and poor payment compliance.
The tighter loss-reduction goals set for 2026 are starting to reveal long-standing flaws in the system, as many operators adapt to greater expectations without immediate income collection, The News Chronicle understands.
Regional performance fluctuated significantly. Eko and Ikeja distribution firms reported the highest recovery rates; utilities in the northern corridor, including Kaduna and Jos, logged substantially lower recovery rates.
Declines among other significant operators such as Abuja, Ibadan, and Port Harcourt point to a broader industry-wide issue.
Expected to ripple throughout the electrical value chain, the revenue gap would limit payments to large bulk merchants and generation companies, thus increasing stress on Nigeria’s already shaky power industry.
