Recovery Efficiency Slumps as Discos Collect N208bn from N253bn Billing

• Ikeja, Eko emerge strongest performers

Emmanuel Addeh in Abuja

Nigeria’s electricity Distribution Companies (Discos) collected N208.15 billion from customer billings of N252.87 billion in May 2026, translating to a collection efficiency of 82.32 per cent, according to the latest commercial performance factsheet released by the Nigerian Electricity Regulatory Commission (NERC).

The report showed that although the utilities marginally increased the amount billed during the month, their ability to recover the full value of electricity supplied weakened, as overall revenue recovery efficiency declined to 77.31 per cent from the previous month.

According to the regulator, the Discos received electricity valued at N328.95 billion during the review period, an increase of 8.58 per cent over April. However, only N252.87 billion, representing 76.87 per cent of the energy received, was billed to customers, indicating that nearly one quarter of electricity supplied was not converted into customer bills.

Besides, the billing efficiency of 76.87 per cent represented a decline of 6.45 percentage points compared to April, suggesting worsening commercial losses despite the higher volume of electricity received by the Discos.

From the total billings of N252.87 billion, the Discos collected N208.15 billion, leaving about N44.72 billion uncollected during the month. Nevertheless, collection efficiency improved by 1.66 percentage points to 82.32 per cent, indicating that the utilities were more successful in recovering payments from customers who were billed.

The report further revealed that the average tariff approved by the regulator stood at N124.39 per kilowatt-hour, while the actual average amount collected was only N96.16 per kilowatt-hour. Consequently, overall revenue recovery efficiency fell to 77.31 per cent, down by 4.80 percentage points from April.

NERC uses revenue recovery performance to measure how much of the approved tariff the Discos are actually able to recover from customers after accounting for billing and collection losses.

Among the distribution companies, Ikeja Electricity recorded the strongest commercial performance in terms of collection, achieving a collection efficiency of 97.28 per cent after collecting N41.51 billion from billings of N42.67 billion. The Disco also posted the highest revenue recovery efficiency of 94.63 per cent, collecting an average of N115.73 per kilowatt-hour against an approved tariff of N122.30 per kilowatt-hour.

Eko Electricity Distribution Company also maintained strong performance. It billed N40.52 billion from energy worth N44.69 billion received, translating to the highest billing efficiency of 90.66 per cent among all the Discos. The company collected N34.59 billion, representing a collection efficiency of 85.37 per cent, while recording a revenue recovery efficiency of 91.54 per cent.

Similarly, Abuja Electricity Distribution Company billed N42.16 billion from energy valued at N51.79 billion and collected N35.94 billion, resulting in a collection efficiency of 85.25 per cent and a revenue recovery efficiency of 84.84 per cent.

At the other end of the spectrum, Kaduna Electricity Distribution Company posted the weakest revenue recovery performance. Although it billed N10.25 billion, it collected only N5.60 billion, resulting in a collection efficiency of 54.64 per cent. Its actual average collection stood at N48.41 per kilowatt-hour against an approved tariff of N121.80 per kilowatt-hour, producing a revenue recovery efficiency of just 39.75 per cent.

Also, Jos Electricity Distribution Company struggled, recording a collection efficiency of 51.20 per cent and a revenue recovery efficiency of 45.38 per cent after collecting N5.99 billion from N11.70 billion billed.

In the same vein, Kano Electricity Distribution Company collected N8.05 billion from billings of N15.77 billion, translating to a collection efficiency of 51.04 per cent and a revenue recovery efficiency of 49.80 per cent.