The Nigerian Electricity Regulatory Commission (NERC) has revealed that electricity distribution companies (DisCos) billed customers N250.79 billion in July 2026 but collected only N205.53 billion, marking a 75.10% billing efficiency. This data, published in NERC’s July 2026 factsheet, underscores persistent challenges in Nigeria’s power sector, including metering gaps and infrastructure deficiencies, despite incremental improvements in revenue collection efficiency.
The report, reviewed by Premium Times, shows that the 11 DisCos received energy valued at N333.94 billion during the month, with billing efficiency declining by 1.14 percentage points compared to June 2026. However, revenue collection efficiency improved by 2.25 percentage points, reaching 81.95%, as companies collected N205.53 billion from total billings of N250.79 billion. This indicates a partial recovery in collections despite the billing shortfall.
Eko Electricity Distribution Company (Eko Disco) emerged as the top performer, achieving a revenue recovery efficiency of 94.67%. It collected an average of N133.29 per kilowatt-hour against an allowed tariff of N140.80/kWh. Port Harcourt DisCo followed with 84.95% recovery efficiency, while Benin DisCo recorded 79.15%. In contrast, Kaduna DisCo had the lowest recovery efficiency at 39.71%, followed by Jos (46.27%) and Kano (55.41%).
Billing efficiency also varied widely, with Kano DisCo leading at 85.37%, followed by Port Harcourt (82.34%) and Eko Disco (78.63%). Yola DisCo recorded the lowest billing efficiency at 61.55%, while Kaduna (64.08%) and Jos (68.51%) trailed closely. Abuja DisCo managed 77.45%, and Ikeja and Ibadan DisCos achieved 74.28% and 70.52%, respectively. These disparities highlight regional and operational inefficiencies across the sector.
NERC’s report attributes the billing and collection gaps to longstanding issues, including the arbitrary estimation of customer usage due to metering gaps. A significant portion of Nigeria’s registered electricity customers lack prepaid meters, forcing DisCos to rely on estimates rather than actual consumption. Additionally, infrastructure challenges and grid collapses continue to disrupt power supply, exacerbating the sector’s instability.
The data reflects a broader pattern of underperformance in Nigeria’s power sector. Over the years, metering gaps have been a critical barrier to accurate billing and revenue collection. The lack of reliable infrastructure has also hindered consistent electricity delivery, leaving many households and businesses without stable power. These issues have drawn criticism from consumers and policymakers alike, who demand systemic reforms.
In June 2026, President Bola Tinubu appointed Joseph Tegbe as the minister of power, tasking him with prioritizing execution over rhetoric. Tegbe emphasized closing the metering gap, ensuring transparency through a public dashboard, and restructuring the sector to deliver tangible improvements. He also pledged to encourage sub-national governments to generate electricity, reducing pressure on the national grid. “If results are not visible in three months, they won’t be in six,” he stated, signaling a focus on measurable outcomes.
Despite these commitments, the July 2026 figures reveal that the power sector remains far from stable. While revenue collection efficiency improved, the gap between billed and collected amounts persists, reflecting systemic inefficiencies. The report also highlights the need for urgent investments in infrastructure and metering to address the root causes of underperformance.
NERC’s findings align with broader concerns about Nigeria’s energy landscape. The commission has previously transferred electricity market oversight to the Akwa Ibom State Regulatory Commission, a move aimed at decentralizing regulation and improving accountability. However, such measures have yet to translate into widespread improvements in service delivery.
The challenges faced by DisCos are compounded by the country’s economic pressures. With inflation and currency fluctuations affecting utility operations, the financial sustainability of the sector remains uncertain. Consumers, meanwhile, continue to grapple with unreliable power supply, which hampers productivity and economic growth.
Industry experts argue that the current approach to power sector reform is insufficient. They call for greater transparency, stricter enforcement of regulations, and increased private sector participation to drive innovation and efficiency. Without these changes, the sector risks further stagnation, leaving millions without access to reliable electricity.
The July 2026 data also underscores the need for stronger collaboration between federal and state governments. Tegbe’s emphasis on sub-national electricity generation highlights the potential for localized solutions, but implementation has been slow. Critics warn that without coordinated efforts, the sector will remain fragmented and underperforming.
Public scrutiny of the power sector has intensified amid rising electricity costs and frequent outages. Consumer advocacy groups have urged the government to prioritize infrastructure development and metering initiatives to restore trust in the system. They argue that without these steps, the sector will continue to fail the people it serves.
The findings from NERC’s report serve as a stark reminder of the challenges facing Nigeria’s power sector. While there are signs of progress, such as improved revenue collection, the underlying issues of metering gaps and infrastructure deficits require sustained attention. Addressing these problems is critical to ensuring that Nigerians have access to reliable and affordable electricity.
The July 2026 figures also highlight the importance of accountability in the sector. With the government under pressure to deliver results, the performance of DisCos and regulatory bodies will be closely monitored. Any further delays in addressing systemic issues could deepen public frustration and erode confidence in the power sector’s transformation.
As Nigeria continues to navigate its energy challenges, the need for comprehensive reforms remains urgent. The data from NERC underscores the scale of the task ahead, but it also provides a baseline for measuring progress. With the right strategies and commitments, the sector has the potential to become a cornerstone of the country’s economic development.
The ongoing efforts to improve billing efficiency and revenue collection are a step in the right direction, but they must be accompanied by broader investments in infrastructure and technology. Only then can Nigeria move toward a future where reliable electricity is a reality for all its citizens.
The July 2026 report serves as both a challenge and an opportunity for the Nigerian power sector. While the data reveals persistent gaps, it also highlights areas where improvements are possible. By addressing the root causes of underperformance, stakeholders can work toward a more stable and equitable energy system for the country.