Billing declines and reduced electricity supply drag earnings, even as collection efficiency improves across distribution companies…..
Nigeria’s electricity distribution companies saw their total revenue decline in February, reflecting ongoing pressures in the country’s power sector despite slight improvements in collections.
Fresh figures released by the Nigerian Electricity Regulatory Commission show that DisCos generated ₦196 billion during the month, down from ₦204.74 billion recorded in January.
The drop comes alongside a noticeable decline in customer billing. According to the commission’s latest performance data, total billing fell to ₦242.29 billion in February, a 9.66 percent decrease compared to the ₦268.20 billion billed a month earlier.
Even with lower revenue, distribution companies managed to improve their ability to collect payments. The report indicates a collection efficiency of 81.17 percent for February, suggesting operators are becoming more effective at recovering billed amounts.
Still, the improvement in collections was not enough to offset the broader decline in billing and supply.
A key factor behind the weaker performance was a sharp drop in electricity supplied to DisCos.
Total energy received fell to 277.09 billion kilowatt-hours (kWh) in February, marking a 17.64 percent decline from January’s 336.43 billion kWh. The reduced supply directly limited how much electricity could be billed to consumers, ultimately weighing on revenues.
The data also highlights the continued gap between approved tariffs and what customers actually pay.
While the average allowed tariff stood at ₦124.30 per kWh, actual collections averaged ₦100.27 per kWh. This disparity resulted in an overall revenue recovery efficiency of 80.67 percent, underscoring the financial strain within the system.
Wide performance gap among DisCos
The report reveals significant differences in performance across distribution companies.
Eko DisCo emerged as the strongest performer, posting a recovery efficiency of 100.67 percent, an indication that it collected more than it billed within the period. Abuja DisCo followed closely with 95.13 percent, while Ikeja DisCo recorded 85.83 percent.
At the other end of the spectrum, Kaduna DisCo lagged significantly with a recovery rate of just 41.20 percent. Ibadan and Jos DisCos also struggled, recording efficiencies of 64.21 percent and 66.29 percent respectively.
A sector walking a tightrope
The February figures reflect a power sector caught between incremental progress and persistent structural challenges.
While improved collections suggest better operational discipline, declining energy supply and lower billing continue to weigh heavily on the financial health of distribution companies, raising fresh concerns about the sector’s ability to sustain itself and deliver reliable power to consumers.
