Nigeria’s electricity distribution companies collected ₦603.64 billion from customers in the second quarter of 2026, according to the Nigerian Electricity Regulatory Commission. The figure came despite a decline in the volume of electricity they received from the power market.
The average energy offtake by the DisCos at their trading points fell to 3,197.03 megawatt in the quarter, a 3.40 per cent decline from the 3,309.48MW recorded in Q1. The DisCos received a total of 6,982.32 gigawatt-hours of electricity but billed customers for only 5,812.31GWh. That translates to an energy accounting efficiency of 83.24 per cent. The naira value of electricity off-taken stood at ₦946.57 billion, while the total value of energy billed was ₦744.67 billion.
The collection efficiency improved to 81.06 per cent from 78.95 per cent in Q1. But the difference between the amount billed and the amount collected stood at ₦141.03 billion. The weighted average Aggregate Technical, Commercial and Collection losses across the 11 DisCos stood at 36.23 per cent. That is 19.31 percentage points higher than the 2026 MYTO target of 16.92 per cent and translates to a cumulative revenue loss of ₦129.07 billion.
Kaduna DisCo recorded the worst underperformance relative to target, with actual ATC&C losses of 67.70 per cent against a target of 18.18 per cent. All the DisCos failed to meet their ATC&C targets during the quarter.
This mirrors the structural dysfunction of Nigeria’s power sector since privatisation in 2013. DisCos inherited decaying infrastructure, inadequate metering and a culture of non-payment. They have improved collection somewhat but have not addressed the technical and commercial losses that bleed revenue.
The human stakes are about service quality. A DisCo that loses 36 per cent of its power cannot invest in network upgrades. A DisCo that collects 81 per cent of what it bills cannot pay generators in full. The cumulative upstream invoice payable stood at ₦410.38 billion, with ₦24.94 billion outstanding after remittances. The shortfall is passed back to the grid through reduced supply.
Winners and Losers
Winners: DisCos that improved collection efficiency, particularly those in the Lagos and Abuja zones. The market operator and NBET, which received 93.92 per cent of what they were owed.
Losers: Customers on estimated billing, who pay for power they do not consume. Kaduna DisCo, which missed its ATC&C target by nearly 50 percentage points. Generators, who face a ₦24.94 billion shortfall in payments. The grid, which loses 36 per cent of its energy to losses and theft.
Bottom Line: A DisCo that loses more than a third of its power is not a distribution company. It is a collection agency for losses. The NERC report shows collection improving. It also shows billing efficiency falling. Nigerians pay more for power they do not get.