DisCos see improved efficiency but revenue drops despite gains
Nigeria’s electricity distribution companies, known as DisCos, experienced improved operational efficiency in February 2026, but this did not result in higher revenues. According to a new report from the Nigerian Electricity Regulatory Commission, key metrics like billing and collection efficiency rose compared to January 2026. However, actual billings and cash collections declined, highlighting ongoing challenges in the sector. The findings point to persistent issues with demand, customer liquidity, and gaps between tariffs and collections.
TLDR
- DisCos received N277.09bn worth of energy in February 2026, a 17.64% increase from January 2026.
- Despite more energy, billings dropped by 9.66% to N242.29bn, and collections fell by 3.94% to N196.68bn.
- Billing efficiency improved to 87.44%, and collection efficiency rose to 81.17% in February 2026.
- Eko, Kano, and Abuja DisCos had the highest billing efficiencies, while Yola and Kaduna DisCos had the lowest.
- The commission approved reduced ATC&C loss targets averaging 16.64% for 2026, reflecting expected improvements from investments made in 2025.
