Nigeria’s electricity distribution companies collected a total of N1.63tn from customers between January and August 2026 but failed to recover N387.19bn of the N2.01tn billed during the eight-month period, according to data from the Nigerian Electricity Regulatory Commission (NERC).
The figures highlight the continuing revenue collection challenges facing the electricity distribution segment, despite improvements recorded in some months.
According to NERC’s commercial performance factsheet for August 2026, the 11 distribution companies collected N220.93bn during the month. This represented a 7.49 per cent increase from the N205.53bn recorded in July.
August also recorded the highest monthly collection across the eight-month period, indicating an improvement in the amount of revenue recovered from electricity consumers.
The collection was also higher than the N204.74bn recorded in January by approximately 7.91 per cent.
However, the overall figures show that a substantial amount of billed revenue remained unpaid. The N387.19bn gap between total billing and collection demonstrates the difficulty of converting electricity supplied and billed into actual revenue.
The month-by-month figures show that collections did not follow a consistent upward trend.
In January, the distribution companies collected N204.74bn. The amount declined to N196.68bn in February, representing a fall of 3.94 per cent.
Collections dropped slightly again in March to N196.13bn, before recovering to N203.61bn in April, an increase of 3.81 per cent.
The upward movement continued in May, when collections rose by 2.23 per cent to N208.15bn.
However, the industry recorded a decline in June, with collections falling to N191.86bn. Revenue subsequently recovered in July, rising to N205.53bn, before reaching N220.93bn in August.
The August performance suggests that the distribution companies improved their revenue recovery compared with the previous month. Nevertheless, the broader collection gap remains a concern for the financial sustainability of the electricity market.
NERC’s factsheet also provided information about the relationship between electricity received, energy billed and payments collected.
During August, the distribution companies received electricity valued at N346.49bn but billed customers N261.10bn. This left N85.39bn worth of received energy unbilled.
The commission put the industry’s billing efficiency at 75.36 per cent, slightly higher than the 75.10 per cent recorded in July.
Billing efficiency measures the proportion of the value of electricity received that distribution companies successfully bill to customers. A lower figure can indicate gaps in metering, billing processes or the ability to account for energy supplied.
The companies collected N220.93bn out of the N261.10bn billed in August, leaving N40.17bn unrecovered for the month.
Collection efficiency consequently improved to 84.62 per cent from 81.95 per cent in July.
The figures show that August delivered improvements in both billing and collection performance, although they also point to continuing weaknesses in the sector’s commercial operations.
The electricity distribution segment is responsible for delivering electricity to end users and collecting payments for the service. Its financial performance is important because revenue collection supports the operations and financial obligations of the electricity market.
When customers are billed but payments are not recovered, distribution companies may face difficulties meeting their obligations to other participants in the power value chain.
At the same time, customers expect reliable electricity supply, accurate bills and effective complaint resolution. Improving revenue collection therefore requires attention to both the performance of distribution companies and the quality of service delivered to consumers.
The figures also underline the importance of reducing unbilled electricity and improving the accuracy of customer records and metering systems.
For the industry, stronger billing and collection processes could help improve revenue recovery and provide a more sustainable financial foundation for electricity distribution.
Although the August results represent progress, the N387.19bn unrecovered from January to August shows that the sector still has considerable work to do.
NERC’s commercial performance figures will remain important in assessing whether the distribution companies can sustain the improvement and narrow the gap between electricity billed and payments received.
