DisCos Record N63.46bn Revenue Shortfall In January Amid 76.34% Collection Efficiency

Electricity distribution companies (DisCos) in Nigeria recorded a decline in billing collections with N63.46 billion revenue shortfall in January 2026, according to the latest data from the Nigerian Electricity Regulatory Commission (NERC).

This reflected a 2.07 per cent decline in collection efficiency to 76.34 per cent during the period.

The shortfall, which represents the gap between the energy billed amounts and actual collections, highlights ongoing challenges in the power sector, including high aggregate technical, commercial, and collection (ATC&C) losses and persistent issues with metering and payment recovery.

Data from the January 2026 Commercial Performance Factsheet for the DisCos released by NERC, on Wednesday, showed that DisCos collected a total of N204.74 billion in revenue from N265.20 billion billed,

The Factsheet details the financial health and operational efficiency of the DisCos, including new Aggregate Technical, Commercial, and Collection (ATC&C) loss targets for 2026.

This marks a slight dip from December 2025, when DisCos achieved 77.12 per cent collection efficiency, collecting N198.45 billion from N257.60 billion billed—amid total energy received of N328.90 billion.

December’s recovery efficiency was marginally higher at 70.25 per cent (N86.40 per kWh actual vs N123.00 per kWh allowed), resulting in a revenue shortfall of N122.15 billion.

In January, out of N336.43 billion in total energy received, DisCos billed N265.20 billion—reflecting 79.72 per cent billing efficiency—leaving a wider N131.69 billion revenue shortfall after collections. The average recovery efficiency stood at 69.16  per cent, with actual collections at N85.97 per kWh against an allowed N124.30 per kWh.

NERC has tightened 2026 ATC&C loss targets to an average 16.92 per cent, down from December’s 17.45 per cent benchmark, anticipating gains from 2025 investments in the Nigerian Electricity Supply Industry (NESI).

Performance varied widely: Ikeja DisCo led January with 87.77 per cent recovery efficiency, followed by Eko at 87.87 per cent. Strong performers included Port Harcourt (79.39 per cent), Benin (79.32 per cent), and Abuja (78.09 per cent). Moderate results were recorded in Ibadan (75.81 per cent), Enugu (68.80 per cent), and Yola (67.40 per cent). In December, Ikeja and Eko also topped charts at 88.20 per cent and 88.10 per cent, respectively.

These metrics highlight DisCos’ billing, collection, and recovery effectiveness—critical for boosting liquidity and service delivery in NESI, NERC noted. The commission urges sustained investments to meet the stricter 2026 targets.