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

Eleven electricity distribution companies in Nigeria (DisCos) collected N205.53 billion from customers, out of the N250.79 billion they billed during July 2026. This amounts to an 81.95% collection efficiency, leaving 18.05% of their total billings unrecovered. The Nigerian Electricity Regulatory Commission (NERC) released these figures in its July 2026 Factsheet, detailing the commercial performance of the 11 DisCos.

The data reveals a significant gap between the electricity provided to DisCos, the amount billed to customers, and the revenue actually collected.

The DisCos received electricity worth N333.94 billion during July, but only billed customers N250.79 billion. This 75.10% billing efficiency points to a gap between the electricity supplied and the revenue ultimately recovered. Out of the N250.79 billion billed, the companies collected N205.53 billion, leaving a shortfall of N45.26 billion.

The sector's revenue recovery efficiency in July was 74.91%, with DisCos operating under an average tariff of N130.15 per kilowatt-hour, compared to an actual average collection of N97.50 per kilowatt-hour.

In the first quarter of 2026, DisCos collected N597.56 billion from N756.93 billion billed, achieving a quarterly collection efficiency of 78.95%. Despite these figures, the pattern persists of sizeable gaps between electricity billings and collections. The July data underscores the ongoing challenges faced by Nigeria's electricity market, where the cost of supplying power often surpasses the revenue recovered from customers.

Even though DisCos managed to collect more than four-fifths of their billings in July, N45.26 billion remained unrecovered, emphasizing the persistent disconnect between electricity supplied to consumers, billed amounts, and the revenue ultimately collected.