By Seun Ibiyemi
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), reflecting a decline in both billing and energy supply during the period.
The figure was contained in NERC’s latest Commercial Performance of DisCos fact sheet, which showed that revenue dropped from N204.74 billion recorded in January.
The report also indicated that total customer billing fell to N242.29 billion in February, down from N268.20 billion in the previous month, representing a 9.66 per cent decline.
Despite the drop in revenue and billing, collection efficiency remained relatively strong at 81.17 per cent, suggesting that DisCos were still able to recover a significant portion of billed amounts.
Energy supply to the distribution companies also declined sharply, with total energy received standing at 277.09 billion kilowatt-hours (kWh) in February, compared to 336.43 billion kWh in January.
NERC further disclosed that the average allowed tariff for the period stood at N124.30 per kilowatt-hour, while the actual average collection rate was N100.27 per kilowatt-hour. Overall revenue recovery efficiency was put at 80.67 per cent.
At the company level, performance remained uneven across the sector. Eko DisCo recorded the highest revenue recovery efficiency at 100.67 per cent, followed by Abuja DisCo at 95.13 per cent, while Ikeja DisCo posted 85.83 per cent.
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On the lower end, Kaduna DisCo recorded the weakest performance with 41.20 per cent efficiency, while Ibadan and Jos DisCos recorded 64.21 per cent and 66.29 per cent respectively.
The wide disparities underscore persistent structural and operational challenges within Nigeria’s electricity distribution network, particularly in revenue collection and service delivery.
The development comes amid ongoing reforms in the power sector following the enactment of the Electricity Act 2023 by President Bola Ahmed Tinubu.
The legislation, which replaced the Electric Power Sector Reform Act 2005, provides a new framework for the post-privatisation phase of the Nigerian Electricity Supply Industry (NESI), with a focus on attracting private investment.
A key provision of the Act is the decentralisation of the electricity sector, allowing state governments, private firms, and individuals to generate, transmit, and distribute electricity independently.
Industry stakeholders say the reform is expected to boost competition, improve efficiency, and expand access to electricity across the country.
