Nigeria's Discos improve efficiency amid N8bn revenue slump

Nigeria's power sector continues to present a complex picture, as evidenced by the February 2026 performance data released by the Nigerian Electricity Regulatory Commission (NERC). While electricity distribution companies (DisCos) have shown commendable improvements in billing and collection efficiencies, this enhanced operational performance has paradoxically coincided with a significant revenue slump. This disconnect highlights persistent structural and commercial weaknesses within the sector's framework.

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Total energy received by all DisCos stood at N277.09bn, representing an increase of 17.64 per cent compared to January 2026.

The data reveals that despite receiving a higher volume of energy (N277.09bn, a 17.64% increase from January), the DisCos billed a lower amount (N242.29bn, a 9.66% drop). This suggests ongoing challenges in accurately accounting for energy and enumerating customers. Although billing efficiency improved to 87.44%, the overall decline in billings points to underlying issues that need addressing.

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billing efficiency increased to 87.44 per cent, reflecting a 7.72 percentage point improvement over the previous month.

Furthermore, the N196.68bn in total revenue collected represents a 3.94% decrease from January, even as collection efficiency rose to 81.17%. This indicates that while the DisCos are better at converting billed energy into cash, the total amount billed has decreased. The report also notes that the actual average collection per kilowatt-hour increased, pushing recovery efficiency upward. However, a gap remains between cost-reflective tariffs and actual collections, underscoring the ongoing financial strain on the utilities and the broader Nigerian Electricity Supply Industry.

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the total revenue collected by DisCos in February 2026 was N196.68bn, representing a decline of 3.94 per cent compared to January.