Electricity Distribution Companies (DisCos) in Nigeria recorded a decline in revenue in February 2026, generating a total of N196 billion, according to the latest commercial performance report released by the Nigerian Electricity Regulatory Commission (NERC).
The report highlights weaker billing and energy supply across the power sector, despite relatively stable collection efficiency by some operators.
According to NERC, the N196 billion revenue recorded in February represented a drop from the N204.74 billion generated in January 2026.
Customer billing also declined during the period, falling from N268.20 billion in January to N242.29 billion in February, a decrease of 9.66 per cent month-on-month.
Despite the drop in revenue, DisCos maintained a collection efficiency of 81.17 per cent, indicating that operators were still able to recover a significant portion of billed amounts from customers.
The report further showed that energy received by DisCos declined sharply in February. Electricity supply fell to 277.09 billion kilowatt-hours (kWh), compared to 336.43 billion kWh recorded in January.
NERC said the average allowed tariff for the month stood at N124.30 per kWh, while the actual average collection rate was N100.27 per kWh. Overall revenue recovery efficiency across the sector was put at 80.67 per cent.
Eko DisCo recorded the strongest revenue recovery efficiency at 100.67 per cent, followed by Abuja DisCo with 95.13 per cent. Ikeja DisCo posted 85.83 per cent efficiency.
At the lower end, Kaduna DisCo recorded the weakest performance with 41.20 per cent recovery efficiency, while Ibadan and Jos DisCos posted 64.21 per cent and 66.29 per cent respectively.
The wide gap in performance reflects persistent operational and structural challenges within Nigeria’s electricity distribution network, particularly around billing, collection, and service delivery.
The latest figures come as the Federal Government continues reforms in the power sector following the enactment of the Electricity Act 2023, signed into law by President Bola Tinubu.
The law replaced the Electric Power Sector Reform Act 2005 and decentralised the electricity market by allowing state governments, private investors, and individuals to generate, transmit, and distribute electricity independently.
The reform is expected to boost competition, attract investment, and improve electricity access nationwide.
However, the latest NERC data suggests that the sector still faces major efficiency and revenue collection challenges despite ongoing reforms.
Earlier reports showed that Nigerian DisCos generated N570.25 billion in revenue in the third quarter of 2025, although significant collection gaps persisted across the industry.
