DisCos lose N201.9 billion in Q2 2026 as billing efficiency falls to 78.67%

Nigeria’s electricity distribution companies (DisCos) recorded N201.90 billion in billing losses in the second quarter of 2026 as their combined billing efficiency fell to 78.67%.

This is according to the second quarter report released by the Nigerian Electricity Regulatory Commission (NERC).

NERC said the 11 DisCos received electricity valued at N946.57 billion during the quarter but billed customers N744.67 billion, leaving N201.90 billion worth of energy supplied but not billed. The billing efficiency was 0.57 percentage points lower than the 79.24% recorded in the first quarter.

Despite the decline in billing efficiency, DisCos improved their ability to collect payments from customers, with collection efficiency rising to 81.06% in Q2 from 78.95% in Q1.

DisCos collect N603.64 billion in Q2

The improvement in collection efficiency came as DisCos recovered N603.64 billion from the N744.67 billion they billed customers during the quarter.

• The N603.64 billion collected represented 81.06% of total customer bills issued during Q2.
• Collection efficiency increased by 2.11 percentage points from the 78.95% recorded in Q1 2026.
• In June alone, DisCos received electricity valued at N315.73 billion but collected N191.86 billion from customers, leaving a N123.87 billion difference for the month.
• Nairametrics had earlier reported that DisCos collected N597.56 billion from N756.93 billion billed in Q1, leaving N159.37 billion in unpaid electricity bills.

The Q2 figures show that while more of the electricity billed by DisCos was recovered from customers, the distribution companies continued to face substantial losses before electricity reached the billing stage.

DisCos remit N385.44 billion to market

NERC also reported that DisCos collectively faced upstream invoices of N410.38 billion during Q2 for electricity generation and transmission-related services.

• N326.46 billion represented DRO-adjusted generation costs payable to the Nigerian Bulk Electricity Trading Plc (NBET), while N83.92 billion covered transmission and administrative services provided by the Market Operator.
• DisCos remitted N306.62 billion to NBET and N78.82 billion to the Market Operator, bringing total payments to N385.44 billion.
• The outstanding balance stood at N24.94 billion at the end of the quarter.
• Their remittance performance was 93.92%, slightly below the 94.08% recorded in Q1.

The figures highlight the financial pressures across the electricity value chain, where DisCos must recover sufficient revenue from customers to meet obligations to upstream market participants.

Power sector still faces wider payment gaps

The Q2 performance follows a broader pattern of revenue shortfalls across Nigeria’s electricity distribution system.

Nairametrics reported that the 11 DisCos supplied electricity valued at N3.68 trillion in 2025, billed N2.99 trillion and collected N2.32 trillion.

• About N694.8 billion of the 2025 gap represented electricity supplied but not billed, while another N669.49 billion represented electricity that was billed but not recovered from customers.
• The government has also been pursuing measures to address accumulated liabilities across the power sector.
• In December 2025, the Federal Government issued the first bond under the Presidential Power Sector Debt Reduction Programme as part of plans to address legacy debts owed to electricity generation companies and gas suppliers.

Meanwhile, Minister of Power Joseph Tegbe recently said the government had no immediate plan to increase electricity tariffs, as the administration focuses on stabilising the electricity value chain, improving supply and strengthening market discipline.