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

In the second quarter of 2026, Nigeria's electricity distribution companies (DisCos) experienced a significant billing loss of N201.90 billion, as their billing efficiency dropped to 78.67%, according to the Nigerian Electricity Regulatory Commission (NERC). The 11 DisCos received electricity worth N946.57 billion during the quarter but only billed customers N744.67 billion, leaving N201.90 billion in energy supplied but uncollected.

The decrease in billing efficiency came despite an improvement in collection efficiency, which rose to 81.06% from 78.95% in the previous quarter. This increase was a result of DisCos recovering N603.64 billion from customers on the N744.67 billion they billed them. While more of the billed electricity was collected from customers, DisCos continued to face substantial losses before electricity reached the billing stage.

The DisCos also faced upstream invoices totaling N410.38 billion for electricity generation and transmission services. The financial pressures across the electricity value chain are evident, as DisCos must recover sufficient revenue from customers to fulfill obligations to upstream market participants. This performance follows a broader pattern of revenue shortfalls across Nigeria's electricity distribution system, with the 11 DisCos supplying electricity valued at N3.68 trillion in 2025, billing N2.99 trillion, and collecting N2.32 trillion.

Minister of Power Joseph Tegbe recently stated that the government has no immediate plan to increase electricity tariffs, with the focus on stabilizing the electricity value chain, improving supply, and strengthening market discipline.