Electricity distributors boost income despite inadequate energy generation

Despite a significant decline in power supply, electricity distribution companies saw notable improvements in revenue collection and billing efficiency in February 2026, as revealed by the latest industry data from the Nigerian Electricity Regulatory Commission.

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The total energy received by the 11 distribution companies dropped 17.64 per cent to N277.09bn in February, down from N336.43bn in January, according to the commission's commercial performance fact sheet.

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Energy bills also decreased, falling 9.66 per cent to N242.29bn in February, compared to N268.2bn in the previous month, while billing efficiency rose to 87.44 per cent, up from 79.72 per cent in January.

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The distribution companies collected a total revenue of N196.68bn in February, a marginal decline of 3.94 per cent from N204.74bn in January, with collection efficiency increasing to 81.17 per cent from 76.34 per cent.

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Power generation declined sharply in February due to gas constraints at power plants, but the distribution companies' revenue recovery performance showed a notable improvement, with the actual average collection rising 16.64 per cent to N100.27/kWh.

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The allowed average tariff remained unchanged at N124.30 per kilowatt-hour, and overall recovery efficiency increased to 80.67 per cent, up from 69.16 per cent in January.

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A breakdown of the distribution companies' performance revealed widespread improvements in February, with Abuja Electricity Distribution Company increasing its billing efficiency to 93.70 per cent and collection efficiency to 89.28 per cent.

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Eko DisCo recorded a strong performance, with billing efficiency rising to 97.20 per cent and collection efficiency to 94.12 per cent, while its recovery efficiency stood at 100.67 per cent, surpassing the allowed tariff benchmark.

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Ikeja DisCo also posted improvements, with billing efficiency increasing to 91.52 per cent and collection efficiency to 85.88 per cent, and its recovery efficiency rising to 85.83 per cent.

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

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However, some distribution companies continued to struggle with revenue recovery, with Kaduna DisCo recording the lowest recovery efficiency at 41.20 per cent, and Jos DisCo posting 66.29 per cent despite a notable improvement in collection efficiency.

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The data indicates that despite weakened electricity supply, the distribution companies strengthened their commercial performance by enhancing billing accuracy and revenue collection.

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The fact sheet is part of the commission's ongoing monitoring of the distribution companies' compliance with performance targets under the current regulatory framework.