DisCos fail to collect N45.26 billion from electricity customers in July

Nigeria’s electricity distribution companies (DisCos) failed to collect N45.26 billion from customers out of the N250.79 billion they billed for electricity in July 2026.

The DisCos collected N205.53 billion during the month, representing an 81.95% collection efficiency and leaving 18.05% of their total billings unrecovered.

The figures are contained in the Nigerian Electricity Regulatory Commission’s (NERC) July 2026 Factsheet, which provides data on the commercial performance of the country’s 11 electricity distribution companies.

The July figures also show a wider gap between the electricity supplied to DisCos, the amount billed to customers and the revenue ultimately collected. The data provides a breakdown of collection performance across the 11 DisCos and shows significant differences between the companies.

DisCos leave N45.26 billion uncollected

DisCos received electricity worth N333.94 billion during the month and billed customers N250.79 billion for the electricity supplied, translating to a 75.10% billing efficiency. Of the amount billed, the companies collected N205.53 billion, leaving a N45.26 billion gap between electricity billings and actual collections.

• Eko Disco recorded the highest collection performance, collecting N34.78 billion against N34.17 billion in billings, resulting in a 101.78% collection efficiency.
• Benin followed with 89.00%, collecting N19.09 billion from N21.45 billion billed, while Yola recorded 88.92%, collecting N3.36 billion from N3.77 billion billed.
• Ikeja collected N34.73 billion from N39.54 billion billed, giving it an 87.85% collection efficiency, while Ibadan recorded 85.97% after collecting N24.45 billion from N28.33 billion billed.
• Port Harcourt collected N18.03 billion from N21.29 billion billed, representing 84.69%, while Abuja recorded 81.03% after collecting N35.62 billion from N43.96 billion billed.
• The weakest collection performances were recorded by Kaduna, Jos and Kano, with collection efficiencies of 49.95%, 52.70% and 52.79%, respectively.

Beyond collections, the sector’s revenue recovery efficiency stood at 74.91% in July. DisCos had an allowed average tariff of N130.15 per kilowatt-hour, compared with an actual average collection of N97.50 per kilowatt-hour.

DisCo collection gaps persist

Nigeria’s DisCos collected N597.56 billion from N756.93 billion billed in the first quarter of 2026, making it the second-highest quarterly collection recorded over the five-quarter period from Q1 2025 to Q1 2026. Their collection efficiency stood at 78.95% during the quarter.

The quarterly figures show that DisCos have consistently recorded sizeable gaps between electricity billings and collections.

• Q4 2025: DisCos collected N630.93 billion from N795.06 billion billed, the highest collection in the five-quarter period.
• Q1 2026: They collected N597.56 billion from N756.93 billion billed.
• Q3 2025: Collections stood at N570.25 billion from N706.61 billion billed.
• Q2 2025: DisCos recovered N564.71 billion from N742.34 billion billed.
• Q1 2025: Revenue collections stood at N553.63 billion from N744.27 billion billed.

The July figure therefore continues a broader pattern in which DisCos recover a substantial portion of electricity billings but still leave a significant amount uncollected.

Power sector revenue gap widens

The collection gap comes as Nigeria’s electricity market continues to face pressure from the difference between the cost of supplying power and the revenue ultimately recovered from customers.

• The Federal Government’s decision to hold off on another electricity tariff increase in the immediate term limits the ability of DisCos to improve revenue through higher tariffs, leaving stronger billing, metering and payment collection as important parts of the sector’s revenue challenge.
• In June 2026, DisCos received electricity valued at N315.73 billion but collected N191.86 billion from customers, creating a N123.87 billion difference between the value of power received and revenue recovered.
• NERC has previously identified commercial and collection losses, inadequate metering, estimated billing, damaged infrastructure and weak payment discipline among the challenges affecting DisCo performance.
• In December 2025, the Federal Government issued a N590 billion bond under the Presidential Power Sector Debt Reduction Programme, with the proceeds aimed at addressing outstanding obligations in the sector.

The July data shows that while DisCos collected more than four-fifths of their billings during the month, N45.26 billion remained unrecovered, highlighting the continuing gap between electricity supplied to consumers, bills issued and revenue ultimately collected.