Nigeria's power sector has suffered a significant setback as power generation declined by 37.17% to 3,885.72 megawatts on Tuesday. This development comes barely two weeks after the Minister of Power, Joseph Tegbe, announced that power generation had peaked at 5,330MW in August and September. The decline is expected to worsen supply across distribution networks, forcing households and businesses to rely on generators amid rising operating costs and petrol prices.
The Nigerian Independent System Operator reported the decline in power generation. The situation is further complicated by persistent challenges in the distribution segment. The Nigerian Electricity Regulatory Commission (NERC) reported that metering, billing, and service interruptions remained major complaints by electricity consumers during the second quarter of 2026.
According to NERC's latest second-quarter report, complaints received across all DISCO customer complaint units increased marginally by 0.86% to 92,407 in Q2'26 from 91,617 in Q1'26. This brings the total complaints in the first half of the year to 184,024. The Commission stated that across the quarter, DISCOs successfully resolved 117 out of 146 complaints filed at the NERC CCU, translating to a resolution rate of 80.13%.
Ikeja Electric attributed the reduced hours of electricity supply across its network to a shortfall in power allocated to it from the national grid. The company stated that the shortfall had resulted in reduced hours of supply to customers. Ikeja Electric assured customers that it is actively engaging stakeholders to improve available power supply and will distribute the power received from the grid as efficiently and equitably as possible.
The worsening supply situation highlights the financial challenges confronting the distribution companies. NERC reported that the weighted average Aggregate Technical, Commercial and Collection (ATC&C) loss across the DISCOs stood at 36.23% in Q2'26, significantly above the 2026 Minimum Remittance Order (MYTO) target of 16.92%. The losses comprised 21.33% technical and commercial losses and 18.94% collection losses.
The ATC&C losses translated into a cumulative revenue loss of N129.073 billion across the DISCOs. Although ATC&C losses declined by 1.21 percentage points from 37.44% in Q1'26, NERC said all the DISCOs missed their targets during the quarter. Kaduna DISCO recorded the largest underperformance, with actual ATC&C losses of 67.70% against a target of 18.18%.
The decline in power generation and the financial challenges facing DISCOs pose significant threats to Nigeria's power sector gains. The situation may lead to increased reliance on generators, further exacerbating the challenges faced by households and businesses. The Minister of Power and other stakeholders will need to address these challenges to ensure a stable and efficient power supply.
Key points
- Power generation in Nigeria declined by 37.17% to 3,885.72MW.
- Distribution companies face significant financial challenges, with a cumulative revenue loss of N129.073 billion.
- Electricity consumers filed 184,024 complaints against Distribution Companies in the first half of 2026.
