DisCos leave N123.8bn power revenue gap in June

Nigeria's distribution companies (DisCos) struggled to convert electricity they received into cash in June 2026, resulting in a N123.87 billion revenue gap, according to the Nigerian Electricity Regulatory Commission's latest commercial performance factsheet. During the month, DisCos received energy valued at N315.73 billion but only collected N191.86 billion from customers.

The N123.87 billion difference represents revenue that did not return to the distribution companies, the sole group collecting revenue across the entire power value chain. Total revenue collected for the month fell by 7.82 percent from the previous month, a steeper decline than the 4.02 percent reduction in energy received. Collection efficiency, or the percentage of collected revenue relative to the energy received, dropped to 79.71 percent, a 2.61 percentage point decrease from May.

Billing performance was slightly better, with DisCos billing customers N240.71 billion, or 76.24 percent of the energy supplied. However, the companies still struggled to recover payments after billing. The average amount collected per kilowatt-hour was N96.63, below the allowed average tariff of N130.15, leading to a recovery efficiency of 74.24 percent, a 3.07 percentage point decline.

Collection rates varied among individual companies, with Benin Electricity Distribution Company leading at 94 percent, while Kaduna and Kano posted the lowest rates at 37.03 percent and 44.04 percent, respectively. The data highlights the persistent challenge of collecting payments from customers after bills are issued, putting pressure on the commercial viability of the power distribution sector.