DisCos ramp up revenue collection amid low power supply

Electricity distribution companies improved their revenue collection and billing efficiency in February 2026 despite a sharp drop in power supply, according to the latest industry data released by the Nigerian Electricity Regulatory Commission.

The commission’s commercial performance fact sheet showed that total energy received by the 11 DisCos fell 17.64 per cent to N277.09bn in February from N336.43bn recorded in January.

Energy bills also declined 9.66 per cent to N242.29bn, down from N268.2bn in the previous month.

However, billing efficiency improved significantly to 87.44 per cent in February, up from 79.72 per cent in January, indicating that a higher proportion of available electricity was successfully billed to customers.

Similarly, total revenue collected by the DisCos dropped marginally by 3.94 per cent to N196.68bn in February from N204.74bn in January.

The PUNCH reports that power generation declined sharply in February due to gas constraints to power plants.

Despite this decline in absolute terms, collection efficiency rose from 76.34 per cent to 81.17 per cent, reflecting stronger cash recovery from billed customers.

The NERC report also showed a notable improvement in revenue recovery performance. While the allowed average tariff remained unchanged at N124.30 per kilowatt-hour, the actual average collection increased 16.64 per cent to N100.27/kWh in February, compared to N85.97/kWh in January.

Consequently, overall recovery efficiency rose from 69.16 per cent to 80.67 per cent.

A breakdown of performance across the DisCos revealed widespread improvements in February.

Abuja Electricity Distribution Company increased its billing efficiency to 93.70 per cent from 84.49 per cent, while its collection efficiency rose to 89.28 per cent from 78.09 per cent. Its revenue recovery also climbed to 95.13 per cent.

Eko DisCo recorded one of the strongest performances, with billing efficiency rising 97.20 per cent and collection efficiency to 94.12 per cent. Its recovery efficiency stood at 100.67 per cent, indicating that it collected above the allowed tariff benchmark.

In the same vein, Ikeja DisCo also posted improvements, with billing efficiency increasing 91.52 per cent and collection efficiency 85.88 per cent, while its recovery efficiency rose 85.83 per cent.

Other operators, including Benin, Enugu, Ibadan, Jos, Kano, Port Harcourt and Yola DisCos, recorded varying degrees of improvement in billing and collection efficiencies.

However, some DisCos continued to lag in revenue recovery. Kaduna DisCo recorded the lowest recovery efficiency at 41.20 per cent, while Jos DisCo posted 66.29 per cent despite a notable improvement in collection efficiency.

The data suggests that although electricity supply weakened during the month, distribution companies strengthened their commercial performance by improving billing accuracy and enhancing revenue collection.

The fact sheet forms part of the commission’s ongoing monitoring of DisCos’ compliance with performance targets under the current regulatory framework.