Nigeria’s electricity distribution companies (DisCos) recorded N201.90 billion in billing losses in the second quarter of 2026 as their combined billing efficiency fell to 78.67%.
This is according to the second quarter report released by the Nigerian Electricity Regulatory Commission (NERC).
NERC said the 11 DisCos received electricity valued at N946.57 billion during the quarter but billed customers N744.67 billion, leaving N201.90 billion worth of energy supplied but not billed. The billing efficiency was 0.57 percentage points lower than the 79.24% recorded in the first quarter.
Despite the decline in billing efficiency, DisCos improved their ability to collect payments from customers, with collection efficiency rising to 81.06% in Q2 from 78.95% in Q1.
The improvement in collection efficiency came as DisCos recovered N603.64 billion from the N744.67 billion they billed customers during the quarter.
The Q2 figures show that while more of the electricity billed by DisCos was recovered from customers, the distribution companies continued to face substantial losses before electricity reached the billing stage.
NERC also reported that DisCos collectively faced upstream invoices of N410.38 billion during Q2 for electricity generation and transmission-related services.
The figures highlight the financial pressures across the electricity value chain, where DisCos must recover sufficient revenue from customers to meet obligations to upstream market participants.
The Q2 performance follows a broader pattern of revenue shortfalls across Nigeria’s electricity distribution system.
Nairametrics reported that the 11 DisCos supplied electricity valued at N3.68 trillion in 2025, billed N2.99 trillion and collected N2.32 trillion.
Meanwhile, Minister of Power Joseph Tegbe recently said the government had no immediate plan to increase electricity tariffs, as the administration focuses on stabilising the electricity value chain, improving supply and strengthening market discipline.
