Discos Revenue Plummets  To ₦196bn In February — NERC

 Electricity distribution companies in Nigeria recorded a revenue decline to ₦196 billion in February 2026, as operational and supply challenges continue to weigh on the power sector, according to a report by the Nigerian Electricity Regulatory Commission (NERC).

The report, which detailed the commercial performance of DisCos for the month, showed that revenue fell from ₦204.74 billion recorded in January, reflecting weaker billing and reduced energy supply across the network.Power sector updates

According to the data, total customer billing dropped to ₦242.29 billion in February from ₦268.20 billion in January, representing a 9.66 per cent decline month-on-month. Despite this, collection efficiency remained relatively strong at 81.17 per cent, indicating that operators were still able to recover a significant portion of billed revenue.

The report also showed a sharp drop in energy received by DisCos, which fell to 277.09 billion kilowatt-hours from 336.43 billion kilowatt-hours in January. This reduction in supply directly impacted billing volumes and overall revenue generation within the Nigerian Electricity Supply Industry.

Further analysis revealed persistent structural gaps in pricing and recovery. While the average allowed tariff stood at ₦124.30 per kilowatt-hour, the actual average collection rate was significantly lower at ₦100.27 per kilowatt-hour. Overall revenue recovery efficiency was put at 80.67 per cent, underscoring ongoing inefficiencies in the sector.

Performance across distribution companies remained uneven. Eko DisCo led with a recovery efficiency of 100.67 per cent, followed by Abuja DisCo at 95.13 per cent, while Ikeja DisCo posted 85.83 per cent. At the lower end, Kaduna DisCo recorded 41.20 per cent, with Ibadan and Jos DisCos posting 64.21 per cent and 66.29 per cent respectively.

The disparities highlight deep-rooted operational challenges, including metering gaps, energy theft, weak infrastructure and regional collection constraints that continue to limit sector-wide efficiency.Power sector updates

The report comes against the backdrop of reforms introduced under the Electricity Act 2023, signed by President Bola Ahmed Tinubu, which decentralised the power sector and opened it up to state governments and private investors.

While the legislation is expected to drive competition and improve electricity access over time, the latest data shows that the sector is still struggling with revenue shortfalls and supply limitations in the short term.

Earlier data had shown that DisCos generated ₦570.25 billion in revenue in the third quarter of 2025, but persistent collection gaps and operational inefficiencies continue to slow progress

For industry watchers, the February numbers reinforce a familiar reality Nigeria’s power sector is not short on reforms, but execution remains the real challenge. Until supply improves and collection gaps are closed, revenue growth will continue to fluctuate.