The Nigerian Electricity Regulatory Commission (NERC) has said that Nigeria’s electricity distribution companies recorded a paradoxical performance in February 2026, as improved efficiency metrics failed to translate into stronger revenues, exposing lingering weaknesses in the power sector’s commercial framework.
The NERC said in a new commercial performance factsheet released on Tuesday that while billing, collection, and recovery efficiencies improved compared to January 2026, actual billings and cash collections declined, raising fresh concerns about liquidity across the Nigerian Electricity Supply Industry.
According to the report published on the official X handle of the commission, total energy received by the 11 DisCos rose to N277.09bn in February, representing a 17.64 per cent increase from January’s N235.53bn.
It said, “Total energy received by all DisCos stood at N277.09bn, representing an increase of 17.64 per cent compared to January 2026.”
However, despite receiving more energy, the DisCos billed only N242.29bn, a 9.66 per cent drop from January’s estimated N268.08bn, pointing to continued gaps in energy accounting and customer enumeration.
Billing efficiency improved to 87.44 per cent, up 7.72 percentage points from 79.72 per cent in January, suggesting better conversion of energy received into invoices, even as total billings declined.
Despite the drop in billings, the regulator said operational performance improved, adding that “billing efficiency increased to 87.44 per cent, reflecting a 7.72 percentage point improvement over the previous month.”
On revenue collection, the report stated that “the total revenue collected by DisCos in February 2026 was N196.68bn, representing a decline of 3.94 per cent compared to January.”
It, however, emphasised that “collection efficiency improved to 81.17 per cent, up by 4.84 percentage points, indicating better conversion of billed energy into cash collections.”
The commission further highlighted gains in tariff realisation, stating that “the actual average collection per kilowatt-hour increased to N100.27, representing a 16.64 per cent improvement compared to January 2026.”
This, it said, pushed recovery performance upward, noting that “overall revenue recovery efficiency rose to 80.67 per cent, an increase of 11.51 percentage points month-on-month.”
The report added that “the allowed average tariff for the period was N124.30/kWh, indicating that a gap still exists between cost-reflective tariffs and actual collections.”
According to local media report, the development underscores a persistent contradiction in Nigeria’s power sector: efficiency improvements are not yet translating into financial stability.
It warned that the situation may continue unless there is wider metering coverage, improved power supply, stronger enforcement against energy theft and better alignment of tariffs with consumer affordability.
GIK/APA