The Nigerian Electricity Regulatory Commission (NERC) disclosed that all 11 electricity distribution companies (DisCos) in Nigeria failed to meet their Aggregate Technical, Commercial and Collection (ATC&C) loss targets in the second quarter of 2026. This resulted in an estimated ₦129.07 billion revenue shortfall. The regulator released this information in its Second Quarter 2026 Report, which reviewed the operational, commercial, and regulatory performance of the Nigerian Electricity Supply Industry (NESI).
According to the report, the combined ATC&C losses of the 11 DisCos stood at 36.23 per cent in Q2, 19.31 percentage points above the 16.92 per cent target set under the 2026 Multi-Year Tariff Order (MYTO). The 36.23 per cent loss comprised 21.33 per cent technical and commercial losses and 18.94 per cent collection losses. Although the figure represented an improvement from the 37.44 per cent recorded in Q1, NERC said the losses translated into a cumulative estimated revenue loss.
Kaduna Electricity Distribution Plc recorded the worst performance against its target, posting an ATC&C loss of 67.70 per cent compared with a target of 18.18 per cent. Jos DisCo followed with 61.30 per cent against a 20.80 per cent target, while Kano DisCo recorded 60.43 per cent against a target of 17.45 per cent. Kano also recorded the sharpest quarter-on-quarter deterioration, with its ATC&C losses rising by 15.35 percentage points from the first quarter.
On the revenue side, the DisCos received electricity valued at ₦946.57 billion but billed customers ₦744.67 billion, representing a billing efficiency of 78.67 per cent and billing losses of ₦201.90 billion. They subsequently collected ₦603.64 billion from customers, translating to a collection efficiency of 81.06 per cent, an improvement of 2.11 percentage points over the 78.95 per cent recorded in Q1.
The Federal Government incurred a ₦321.26 billion electricity subsidy obligation during the quarter as end-user tariffs remained frozen at the rates applicable in July 2024. NERC said the subsidy obligation was ₦37.06 billion, or 10.34 per cent, lower than the ₦358.32 billion recorded in Q1, attributing the reduction primarily to a 3.40 per cent decline in electricity offtake by the DisCos.
The report further showed that the 28 grid-connected power plants generated 8,784.93 gigawatt-hours (GWh) during the quarter, representing a 1.11 per cent decline from 8,883.47GWh in Q1. Average available generation capacity stood at 4,454.17 megawatts, while the average plant availability factor was only 32.69 per cent. This meant that 67.31 per cent of installed capacity was unavailable for dispatch during the quarter.
NERC also raised fresh concerns over safety in the electricity industry, reporting 36 accidents, 20 fatalities, and 23 injuries during the quarter. The figures represented increases from 24 accidents, 17 fatalities, and 13 injuries recorded in Q1. The commission said most of the accidents occurred at the distribution level, with the distribution segment accounting for 95.34 per cent of the 43 casualties recorded during the quarter.
Key points
- All 11 DisCos missed their ATC&C loss targets, resulting in a ₦129.07 billion revenue shortfall.
- The Federal Government incurred a ₦321.26 billion electricity subsidy obligation during Q2 2026.
- The DisCos' cumulative upstream market obligation stood at ₦410.38 billion in Q2, with an overall remittance performance of 93.92 per cent.
