The Nigerian Electricity Regulatory Commission (NERC) has released its July 2026 commercial performance report, revealing that the country's 11 electricity distribution companies (DisCos) billed a total of N250.79 billion for electricity in July 2026. However, they collected only N205.53 billion, representing a collection efficiency of 81.95%. This is a 2.25 percentage point increase from the previous month.
The report showed that the DisCos received energy valued at N333.94 billion, but only 75.10% of the energy received was billed to customers. The billing efficiency declined by 1.14 percentage points from the previous month. Despite this decline, the DisCos recorded an improvement in revenue collection. The collection efficiency of 81.95% is a significant improvement from the previous month.
Eko Electricity Distribution Company recorded the highest revenue recovery efficiency at 94.67%, collecting an average of N133.29 per kilowatt-hour against an allowed average tariff of N140.80/kWh. Port Harcourt DisCo followed with a recovery efficiency of 84.95%, while Benin recorded 79.15%. These figures indicate significant variations in the commercial performance of the DisCos.
On the other hand, Kaduna DisCo recorded the lowest recovery efficiency at 39.71%, followed by Jos at 46.27% and Kano at 55.41%. Kano DisCo recorded the highest billing efficiency at 85.37%, followed by Port Harcourt at 82.34% and Eko at 78.63%. These figures highlight the need for improvement in the commercial performance of some DisCos.
Yola DisCo recorded the lowest billing efficiency at 61.55%, followed by Kaduna at 64.08% and Jos at 68.51%. Abuja DisCo recorded 77.45% billing efficiency, while Ikeja and Ibadan recorded 74.28% and 70.52%, respectively. These figures indicate that while some DisCos have made significant improvements, others still have a long way to go.
The NERC report also highlighted the challenges facing the power sector, including the arbitrary estimated billing of customers due to metering gaps. A significant portion of registered electricity customers in Nigeria lack prepaid meters, forcing DisCos to rely on estimation rather than actual consumption. This has been a major challenge in the power sector for years.
The Minister of Power, Joseph Tegbe, has pledged to prioritize execution over rhetoric, identifying power distribution, metering, transparency, and sub-national participation as key areas of intervention. He has promised to close the metering gap and ensure Nigerians can track performance through a transparent public dashboard. The sector is expected to undergo significant reforms in the coming months.
Key points
- The DisCos collected N205.53 billion from total billings of N250.79 billion during the month, representing a collection efficiency of 81.95%.
- Eko Electricity Distribution Company recorded the highest revenue recovery efficiency at 94.67%.
- The Minister of Power has pledged to prioritize execution over rhetoric, identifying power distribution, metering, transparency, and sub-national participation as key areas of intervention.
