Electricity distribution companies (DisCos) recorded a N63.46 billion revenue shortfall in January 2026 as average recovery efficiency declined to 69.16 per cent, contrary to stricter performance thresholds introduced by the Nigerian Electricity Regulatory Commission (NERC). The latest Commercial Performance Factsheet released by the Commission showed that out of N268.2 billion billed to customers during the month, only N204.74 billion was recovered, leaving a significant gap that continues to weigh on liquidity in the power sector. The drop in revenue recovery coincides with newly-enforced Aggregate Technical, Commercial and Collection (ATC&C) loss targets, which were reduced to an industry average of 16.92 per cent for 2026, down from 20.54 per cent in 2025. The revised cap is aimed at pushing DisCos to improve operational efficiency to align with investments made in the previous year.
Recovery efficiency declined by 3.15 percentage points compared to the previous year, even as the allowed average tariff stood at N124.30 per kilowatt-hour (kWh), significantly higher than the actual average collection of N85.97/kWh. This gap between cost-reflective tariffs and realisable revenue underscores a persistent structural challenge in the market, where energy delivered is neither fully billed nor fully paid for.

Guardian