NERC: DisCos revenue falls to N196 billion in February 2026

Electricity distribution companies (DisCos) in Nigeria generated a total of N196 billion in revenue in February 2026, according to the Nigerian Electricity Regulatory Commission (NERC).

The figure was disclosed in the commission’s latest Commercial Performance of DisCos fact sheet for the month.

The report shows a slight decline in revenue performance compared to the previous month, alongside mixed operational and collection outcomes across the power sector.

What the report is saying

NERC data indicates that DisCos recorded lower revenue and billing levels in February compared to January, although collection efficiency remained relatively strong.

• DisCos collected N196 billion in February, down from N204.74 billion in January
• NERC stated that total billing stood at N242.29 billion, compared to N268.20 billion in January
• This reflects a 9.66% decline in customer billing month-on-month
• Collection efficiency stood at 81.17% in February

The data suggests that while revenue declined, DisCos were still able to recover a significant portion of billed amounts.

Energy supply also declined during the period, with DisCos receiving 277.09 billion kilowatt-hours (kWh) in February, down from 336.43 billion kWh in January.

More Insights 

The report shows variations in operational and financial performance across Nigeria’s electricity distribution companies, with efficiency levels differing significantly by region.

• Average allowed tariff stood at N124.30/kWh in February
• Actual average collection rate was N100.27/kWh
• Overall revenue recovery efficiency stood at 80.67%

At the company level, performance remained uneven across the DisCos:

• Eko DisCo recorded the highest recovery efficiency at 100.67%
• Abuja DisCo followed with 95.13% efficiency
• Ikeja DisCo posted 85.83% efficiency
• Kaduna DisCo recorded the weakest performance at 41.20%
• Ibadan DisCo and Jos DisCo recorded 64.21% and 66.29% respectively

The disparities highlight ongoing structural and operational challenges in Nigeria’s electricity distribution network, particularly in revenue collection and service delivery efficiency.

Get up to speed 

President Bola Ahmed Tinubu, in June 2023, assented to the Electricity Act 2023, a landmark legislation originally passed by the National Assembly in July 2022.

• The new Act replaces the Electric Power Sector Reform Act 2005 and introduces a comprehensive framework to guide the post-privatisation phase of the Nigerian Electricity Supply Industry (NESI). It is also designed to attract increased private sector investment into the power sector.
• A major feature of the law is the removal of electricity from the Exclusive Legislative List, effectively decentralising the sector.
• This reform allows state governments, private companies, and individuals to generate, transmit, and distribute electricity independently, thereby breaking the long-standing monopoly at the national level.
• The Act is expected to drive competition, improve service delivery, and expand access to electricity across the country by enabling subnational and private participation in power infrastructure development.

What you should know 

The latest NERC data reflects a power sector still grappling with revenue efficiency gaps despite relatively strong collection performance in some regions.

• Earlier, Nairametrics reported that DisCos in Nigeria generated N570.25 billion in revenue in the third quarter of 2025.
• The figures show that while revenue performance improved compared to the previous quarter, significant collection gaps and structural challenges remain within the Nigerian Electricity Supply Industry (NESI).
• Earlier, NERC had directed that all refunds under the amended order must be completed within 12 months, with reimbursements applied directly to customer electricity bills.

In October 2025, the Federal Government approved the disbursement of N28 billion to electricity distribution companies under the Meter Acquisition Fund (MAF) Tranche B scheme for the procurement and installation of prepaid meters.