DisCos recover N597.6 billion despite grid collapses, post second-highest quarterly collection in five quarters

Nigeria’s electricity distribution companies (DisCos) recovered N597.56 billion from electricity bills issued to customers in the first quarter of 2026, making it the second-highest quarterly revenue collection recorded in the past five quarters despite a 0.41% decline in collection efficiency.

The figures are contained in the Nigerian Electricity Regulatory Commission (NERC) First Quarter 2026 Report, which showed that DisCos collected 78.95% of the N756.93 billion billed to customers during the period.

Although collections declined from the record N630.93 billion posted in the fourth quarter of 2025, the industry still outperformed the first three quarters of last year. However, about N159.37 billion in electricity bills remained unpaid during the period.

The quarter was also marked by operational disruptions, with Nigeria’s national grid suffering two total system collapses. The first occurred on January 23, cutting electricity supply to all 11 DisCos, while a second collapse followed on January 27 after multiple 330kV transmission lines tripped simultaneously.

What the report is saying

NERC reported that the industry’s collection efficiency declined marginally by 0.41 percentage points from 79.36% recorded in the fourth quarter of 2025.

• “The total revenue collected by all DisCos in 2026/Q1 was N597.56 billion out of the N756.93 billion that was billed to customers,” NERC stated.
• Ikeja DisCo recorded the highest collection efficiency at 90.00%, followed by Eko (89.64%), Benin (85.16%), Port Harcourt (81.22%) and Abuja (80.90%).
• Kaduna DisCo posted the lowest collection efficiency at 45.81%.
• Jos, Kaduna, Kano, Port Harcourt and Benin DisCos improved their collection efficiency compared with the previous quarter, while Enugu DisCo recorded the sharpest decline of 6.28 percentage points.

The regulator noted that despite the slight decline in efficiency, Q1 2026 still delivered one of the strongest quarterly revenue performances in recent years.

More Insights

An analysis by Nairametrics shows that despite a marginal decline from the previous quarter, electricity distribution companies recorded their second-highest quarterly revenue collection in the last five quarters, highlighting a sustained improvement in cash recovery across the sector.

• Q4 2025: DisCos collected N630.93 billion from N795.06 billion billed, the highest quarterly collection during the five-quarter period.
• Q1 2026: Revenue collection stood at N597.56 billion out of N756.93 billion billed, ranking as the second-highest quarterly recovery.
• Q3 2025: Collections amounted to N570.25 billion from N706.61 billion billed.
• Q2 2025: DisCos recovered N564.71 billion out of N742.34 billion billed.
• Q1 2025: Revenue collections stood at N553.63 billion from N744.27 billion billed.

The trend indicates that while collection efficiency eased slightly in the first quarter of 2026, the electricity distribution companies have maintained relatively strong revenue recovery compared with earlier quarters, reflecting gradual improvements in billing and collection performance.

NERC also observed only marginal changes in energy accounting efficiency during the quarter, noting an inverse relationship between energy offtake and collection performance. According to the commission, when DisCos receive higher volumes of electricity, the additional supply is often allocated to areas where energy accounting and revenue collection have historically been weaker, reducing overall collection efficiency.

What you should know

Nairametrics previously reported that electricity distribution companies recorded an aggregate billing efficiency of 82.03% in the fourth quarter of 2025, despite posting N174.12 billion in billing shortfalls.

• Collection efficiency measures the proportion of electricity bills successfully recovered by DisCos from customers.
• Lower collection efficiency affects cash flows across the electricity value chain, reducing payments to generation companies (GenCos), the Transmission Company of Nigeria (TCN) and gas suppliers.
• NERC has continued to implement reforms aimed at improving metering, reducing commercial losses and strengthening revenue collection across the distribution segment.
• The regulator recently directed DisCos to refund N20.33 billion to customers who procured prepaid meters under the Meter Asset Provider (MAP) scheme, with all reimbursements to be completed within 12 months through electricity bill credits.

The latest figures suggest that while electricity distributors continue to improve revenue collection compared with most previous quarters, operational challenges and unpaid customer bills remain significant obstacles to improving the financial sustainability of Nigeria’s power sector.