National News Desk
Nigeria’s electricity distribution companies (Discos) collected N208.15 billion out of N252.87 billion billed to customers in May 2026, representing a collection efficiency of 82.32 per cent, according to the latest commercial performance report released by the Nigerian Electricity Regulatory Commission (NERC).
Despite a slight increase in customer billings during the month, the report showed that the overall revenue recovery efficiency of the Discos dropped to 77.31 per cent, reflecting a decline in their ability to recover the full value of electricity supplied.
NERC disclosed that electricity worth N328.95 billion was supplied to the distribution companies in May, an increase of 8.58 per cent compared to April. However, only N252.87 billion, representing 76.87 per cent of the total energy received, was billed to customers, leaving nearly a quarter of the supplied electricity unbilled.
The regulator noted that the billing efficiency fell by 6.45 percentage points from the previous month, indicating increased commercial losses across the sector despite higher energy supply.
Out of the total amount billed, the Discos recovered N208.15 billion, leaving N44.72 billion unpaid. While collection efficiency improved slightly by 1.66 percentage points, the overall revenue recovery weakened because of lower billing efficiency.
NERC explained that the average approved electricity tariff stood at N124.39 per kilowatt-hour, but the actual average amount recovered was N96.16 per kilowatt-hour, resulting in the decline in overall revenue recovery performance.
Among the electricity distribution companies, Ikeja Electric recorded the strongest performance, collecting N41.51 billion from N42.67 billion billed, translating to a collection efficiency of 97.28 per cent. The company also posted the highest revenue recovery efficiency of 94.63 per cent.
Eko Electricity Distribution Company also ranked among the best performers, recording the highest billing efficiency of 90.66 per cent after billing N40.52 billion from electricity valued at N44.69 billion. It collected N34.59 billion, representing a collection efficiency of 85.37 per cent.
Similarly, Abuja Electricity Distribution Company billed N42.16 billion from electricity worth N51.79 billion and recovered N35.94 billion, achieving a collection efficiency of 85.25 per cent.
On the other hand, Kaduna Electricity Distribution Company recorded the weakest performance, collecting only N5.60 billion from N10.25 billion billed, giving it a collection efficiency of 54.64 per cent and a revenue recovery efficiency of 39.75 per cent.
Jos Electricity Distribution Company also struggled, recovering N5.99 billion from N11.70 billion billed, while Kano Electricity Distribution Company collected N8.05 billion out of N15.77 billion, with both companies recording collection efficiencies of just above 51 per cent.
The latest NERC report highlights ongoing challenges in Nigeria’s power distribution sector, particularly in converting electricity supplied into revenue, despite modest improvements in payment collection from billed customers.
