Nigeria’s Electricity Distribution Companies (DisCos) generated nearly N600 billion in revenue during the first quarter of 2026 despite widespread blackouts, gas shortages, and persistent complaints from consumers over poor power supply.
Data released by the Nigerian Electricity Regulatory Commission (NERC) showed that the 11 DisCos collected a total of N597.55 billion between January and March, averaging about N199 billion monthly. Collections stood at N204.74 billion in January, N196.68 billion in February, and N196.13 billion in March.
Despite the strong revenue performance, the companies failed to recover all billed amounts. In January alone, DisCos billed customers N268.2 billion but recovered only N204.74 billion, leaving a revenue gap of N63.46 billion. Similar shortfalls were recorded in February and March, with uncollected revenues of N45.61 billion and N50.30 billion respectively.
The NERC report showed mixed operational performance across the distribution companies. Eko and Ikeja DisCos remained among the strongest performers in billing and revenue recovery, with Eko DisCo recording more than 100 per cent recovery efficiency in February. In contrast, Kaduna and Jos DisCos continued to struggle with weak collection rates, with Kaduna posting one of the lowest recovery efficiencies during the period.
The report also highlighted significant levels of unbilled energy across the industry, underscoring ongoing challenges in converting electricity supplied into actual revenue. Industry stakeholders have repeatedly called for improved metering, stronger enforcement against energy theft, and better customer service to address the losses.
The revenue figures come against the backdrop of a severe electricity crisis in the first quarter of the year. Power generation dropped sharply due to gas supply constraints, falling from around 4,000 megawatts to below 2,000 megawatts at certain periods, resulting in widespread outages across the country.
According to operational data from the Nigerian Independent System Operator, thermal power plants required about 1.63 billion standard cubic feet of gas daily to operate optimally. However, actual gas supply stood at just 692 million standard cubic feet per day as of February 23, representing less than 43 per cent of the required volume.
The gas shortage forced several power plants to shut down while the Transmission Company of Nigeria implemented load shedding to ration available electricity among the distribution companies. Although DisCos attributed the outages to generation constraints, consumers continued to express frustration over high electricity tariffs amid unreliable power supply.
Industry analysts say the figures reflect the power sector’s ongoing paradox: rising revenues for distribution companies despite inadequate supply, infrastructure deficits, and persistent service delivery challenges that continue to affect millions of electricity consumers nationwide.
