Discos Bill N242bn, Recover 81%, as February Revenue Dips to N196.7bn

Emmanuel Addeh in Abuja

Electricity Distribution Companies (Discos) in Nigeria recorded total billings of N242.29 billion in February 2026, but were only able to collect N196.68 billion, translating to a collection efficiency of 81.17 per cent during the period.

According to the latest factsheet released by the Nigerian Electricity Regulatory Commission (NERC), while the commercial performance of the Discos improved in some areas, significant gaps persisted in revenue recovery and operational efficiency across the country.

For instance the N196.68 billion revenue collected in February was less than the N204.74 billion received by the power distributors in January, implying a 3.94 per cent dip in earnings month-on-month.

In the period under review, total energy received by the Discos stood at 277.09 billion kilowatt-hours (kWh), while energy billed was 242.29 billion kWh. This resulted in a billing efficiency of 87.44 per cent, indicating that a portion of supplied electricity remained unbilled due to technical and commercial losses.

On the revenue side, the N242.29 billion billed translated into actual collections of N196.68 billion, leaving a revenue shortfall of over N45 billion. Despite this gap, collection efficiency rose to 81.17 per cent, reflecting a 4.84 percentage point improvement compared to January 2026.

Further THISDAY analysis of the figures showed that the average allowed tariff stood at N124.30 per kWh, while the actual average collection was significantly lower at N100.27 per kWh. This resulted in an overall revenue recovery efficiency of 80.67 per cent, suggesting that Discos are still unable to fully realise approved tariffs.

Among the individual Discos, Eko Disco emerged as the strongest performer in revenue recovery, achieving 100.67 per cent efficiency. Besides, Abuja Disco posted a strong performance with 95.13 per cent recovery efficiency, followed by Ikeja Disco with 85.83 per cent recovery efficiency.

In contrast, Kaduna Disco recorded the weakest recovery rate at just 41.20 per cent, highlighting deep challenges in revenue collection within its franchise area. Ibadan and Jos Discos also underperformed, with recovery efficiencies of 64.21 per cent and 66.29 per cent respectively.

Collection efficiency varied widely across operators. Eko again led with 94.12 per cent, followed by Abuja at 89.28 per cent and Benin at 86.95 per cent. At the lower end, Kaduna recorded just 49.27 per cent collection efficiency, while Enugu and Kano stood at 67.73 per cent and 62.49 per cent respectively.

Billing efficiency, which reflects the proportion of energy received that is successfully billed, was highest in Kano at 99.04 per cent and Eko at 97.20 per cent and Abuja with 93.7 per cent. Yola recorded the lowest billing efficiency at 66.09 per cent, suggesting substantial losses in energy accounting.

In absolute terms, Abuja Disco recorded the highest energy received at 46.20 billion kWh and billed 43.29 billion kWh, while Ikeja followed with 44.67 billion kWh received and 40.89 billion kWh billed.

The data also indicated that while some Discos are improving month-on-month, the sector continues to grapple with systemic inefficiencies, including energy losses, poor metering, and weak revenue collection mechanisms.

The NERC data noted that most of the key performance indicators showed marginal improvements compared to January 2026, particularly in billing, collection, and recovery efficiencies. However, the disparities among Discos underscored uneven operational capacities and the need for targeted interventions.

Nigeria’s electricity sector continues to operate far below demand, with available generation typically hovering between about 4,000MW and 5,500MW against an estimated national demand that often exceeds 12,000MW to 20,000MW depending on industrial activity and peak periods.

Installed generation capacity is higher on paper at over 13,000MW, but a significant share remains constrained by gas shortages, grid instability, maintenance issues, and technical faults across thermal and hydro plants. This persistent gap between installed, available, and actual dispatched power remains the structural foundation of the country’s electricity crisis.

On the transmission side, the national grid remains a major bottleneck. The Transmission Company of Nigeria (TCN) has a wheeling capacity that has gradually improved to above 8,000MW in technical terms, but in practice the grid often becomes unstable at much lower loads due to frequency fluctuations and ageing infrastructure.

At the distribution end, the eleven Discos continue to face commercial and technical losses that weaken the entire value chain. Aggregate Technical, Commercial and Collection (ATC&C) losses remain high in several regions, with collection efficiency in some cases falling below 80 per cent.