Business
Electricity billing efficiency slips despite whopping collections of ₦203.6bn
Nigeria’s electricity distribution companies (DisCos) improved their revenue collection performance in April 2026; however, widespread inefficiencies in billing and revenue recovery continue to undermine the power sector’s sustainability.
This is the central finding of the latest performance factsheet published by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday.
A review of the report shows that the 11 electricity distribution companies collectively received electricity valued at ₦302.96 billion during the month. However, they billed customers ₦252.43 billion, translating to a national billing efficiency of 83.32%.
According to the factsheet, energy received increased by 3.13% compared to March, while energy billed rose by 2.43%. Despite this, billing efficiency declined marginally by 0.57 percentage points, indicating that a larger share of available electricity remains unbilled.
Increased revenues; improved performance
The report highlights that DisCos collected N203.61 billion from the ₦252.43 billion billed. NERC stated that this represents a collection efficiency of 80.66%—an improvement of 1.07 percentage points over March.
Consequently, average revenue recovered rose to ₦102.13 per kilowatt-hour, against the regulator’s allowable average tariff of ₦124.39 per kilowatt-hour. This resulted in a national revenue recovery efficiency of 82.11%, which is also an improvement on the previous month.
While these figures suggest a gradual improvement in commercial performance, they also reveal that nearly one-fifth of electricity bills issued nationwide remained unpaid during the month.
Eko Electricity Distribution Company and Port Harcourt Electricity Distribution Company exceeded NERC’s revenue recovery benchmark of 80%. Eko DisCo emerged as the country’s top commercial performer, recording 91.56% and 94.26% in billing and collection efficiencies, respectively, with a revenue recovery efficiency of 102.09%. This performance means the company collected more revenue per unit of electricity than the regulator’s benchmark, reflecting robust billing and collection operations.
Port Harcourt DisCo followed with a recovery efficiency of 90.39%, supported by a collection efficiency of 91.41%. Benin (86.65%), Abuja (89.77%), and Ikeja (88.89%) also maintained relatively strong revenue recovery, though they remained below Eko’s performance.
Northern DisCos struggle
The factsheet highlights persistent weaknesses among several distribution companies in northern Nigeria. Kaduna DisCo posted the weakest revenue recovery nationwide at 43.15%, despite recording the largest month-on-month improvement in collection efficiency.
Similarly, Kano recovered only 51.87% of expected revenue, while Jos achieved 52.48% and Yola 65.07%. These figures indicate that substantial portions of electricity supplied across these franchise areas generate little commercial value. Collection efficiency also remained particularly weak in Kano (49.89%), Kaduna (55.38%), and Jos (58.93%). This suggests that nearly half of the bills issued in some areas remain unpaid.
Mixed trends
The report reveals significant disparities in billing efficiency across the country. Enugu DisCo recorded the highest billing efficiency at 92.77%, followed closely by Eko at 91.56%. Conversely, Kaduna billed only 62.81% of electricity received, while Yola and Jos achieved 66.35% and 69.50% respectively. These figures point to continuing metering gaps, energy losses, and operational inefficiencies.
Although national collection efficiency improved, performance across individual DisCos remains mixed. Some companies experienced declining collection performance despite relatively high billing efficiency. For example, NERC reported that Ikeja’s collection efficiency declined by 6.41 percentage points, while Kano recorded the sharpest deterioration, falling by 21.15 percentage points. Enugu and Ibadan also experienced declines. In contrast, Kaduna recorded the largest improvement in collection efficiency (an increase of 16.84 percentage points), although its overall performance remains among the weakest nationally.
What do the numbers mean?
The April figures suggest that Nigeria’s electricity distribution segment continues to face structural commercial challenges, despite incremental improvements in revenue collection.
The report shows that billing efficiency remains relatively stagnant, with nearly 17% of electricity received going unbilled and about 19% of billed revenue remaining uncollected nationwide. Additionally, commercial performance is highly uneven; only two DisCos surpassed NERC’s 80% revenue recovery benchmark, while several operators recovered barely half of expected revenue.
These disparities underscore the challenges of metering deficits, energy theft, weak collections, and operational inefficiencies that have long constrained the financial sustainability of Nigeria’s electricity market. Despite significant investments in generation infrastructure over the years, gas supply constraints, maintenance issues, transmission hitches, and ageing grid infrastructure continue to limit effective electricity delivery.
READ ALSO: New power minister promises visible improvement in electricity supply, says progress won’t be dramatic
Supply shortfalls have forced many households and businesses to resort to expensive solar systems and generators as alternatives. Spikes in fuel costs in recent months, following the reverberations of the conflict in the Middle East, have further driven up energy costs, making these alternatives largely unaffordable for Nigerians already grappling with a severe cost-of-living crisis.
The newly appointed Minister of Power, Joseph Tegbe, has vowed that electricity supply will witness notable improvement, though he expressed reservations regarding the immediate prospect of round-the-clock power. Overall, while NERC’s April results point to gradual improvements in sector-wide revenue collection, they highlight the significant work required for most electricity distributors to achieve commercial sustainability.
Former President of the African Development Bank (AfDB), Akinwumi Adesina, has declared his readiness to serve Nigeria in any capacity, saying he has a duty and responsibility to contribute to the country’s development.
Mr Adesina made the declaration on Tuesday after meeting President Bola Tinubu at the Presidential Villa in Abuja, where he briefed the president on his 10-year tenure at the continental development finance institution.
“I’m fully able to help Nigeria in any capacity. I’ve always had that. You know, my heart is always at home,” he told journalists after the meeting.
Asked what role he could play, Mr Adesina said he would help in any capacity the president considered appropriate, but stressed he was not seeking a government appointment.
“I’m not looking for a job. I’m not looking for anything. I’m just here to help. It’s my country. I have a duty, an obligation, and a responsibility to do so, and I will,” he said.
There was no announcement of a specific role or appointment for the former AfDB president following the meeting.
Adesina’s record in agriculture and development finance
Mr Adesina, an agricultural economist, served as Nigeria’s minister of agriculture and rural development from 2011 to 2015 under former President Goodluck Jonathan before becoming the first Nigerian to lead the AfDB.
He was elected president of the bank in May 2015 and re-elected for a second five-year term in August 2020. His tenure ended in 2025.
As agriculture minister, he championed reforms to the distribution of subsidised farm inputs, including an electronic-wallet system that let farmers receive support for seeds and fertiliser via mobile phones.
The AfDB said the programme reached 15 million farmers within its first four years. The initiative was intended to improve access to agricultural inputs while reducing the role of intermediaries in their distribution.
At the AfDB, Mr Adesina oversaw the institution’s development agenda, which included expanding electricity access, improving food security, industrialising African economies, promoting regional integration and improving living standards.
During his leadership, the bank’s general capital increased from $93 billion to $208 billion in 2019, following a decision by its shareholders, the largest capital increase in the institution’s history at the time.
AfDB provided $7 billion to Nigeria in 10 years
At the meeting, Mr Adesina said the AfDB provided about $7 billion in financing to Nigeria between 2015 and 2025.
He compared this with the $11.1 billion in cumulative financing the bank had provided to Nigeria since it began operations in the country in 1971.
“Within 10 years, we were able to do 63 per cent, literally, of that,” he said, adding that President Tinubu was pleased with the bank’s support to Nigeria during his tenure.
Mr Adesina said he used the meeting to commend the president for his economic reforms, particularly the removal of the petrol subsidy and the harmonisation of the foreign exchange windows.
He described the measures as difficult but said they were beginning to produce results.
He cited increased foreign exchange availability, the return of portfolio investors and a downward trend in inflation as signs of progress. However, he acknowledged that prices remained high for Nigerians.
He also pointed to improved assessments of Nigeria by some international rating agencies, saying the country’s outlook had shifted towards stable or positive assessments.
The comments come amid ongoing debate over the impact of the Tinubu administration’s economic reforms, including higher fuel costs after the removal of the petrol subsidy and changes to the foreign exchange market.
Although the government has defended the measures as necessary to stabilise the economy, the higher cost of living has continued to put pressure on households and businesses.
From economic stabilisation to growth
Mr Adesina said stabilising the economy was only the beginning, arguing that Nigeria must now focus on structural transformation, economic growth and prosperity.
He said President Tinubu recognised the need to move beyond macroeconomic reforms and address the broader challenge of transforming the economy.
“I told the president, I’m back at home, here to help and ready to help. It’s my country. I love my country, and I’m ready to help,” he said.
His offer comes after a decade leading one of Africa’s major development finance institutions, a period during which the bank financed projects and programmes across sectors including agriculture, energy, transport and infrastructure.
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Mr Adesina’s meeting with the president also gave him an opportunity to formally brief the president on the completion of his two terms and the achievements recorded during his leadership of the bank.
He said he was honoured to have been received by the president and was pleased with the report he presented.
While Mr Adesina did not specify how he might contribute to Nigeria’s development, he said he was prepared to do so whenever the president believed his experience could be useful.
“It’s my country. I have a duty, an obligation, and a responsibility to do so, and I will,” he said.
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