Over N48.85bn electricity bills uncollected in June – NERC

Nigeria’s electricity distribution companies (DisCos) left N48.85 billion worth of electricity bills uncollected in June 2026, highlighting renewed pressure on the financial health of the power market.

The latest commercial performance data from the Nigerian Electricity Regulatory Commission (NERC), released on September 2, showed that the 11 DisCos billed customers N240.71 billion for electricity during the month but collected only N191.86 billion.

The difference represents a collection gap of N48.85 billion.

The June figures also showed a deterioration in revenue collection compared with May, when the DisCos collected N208.15 billion. June collections therefore fell by about N16.29 billion, or 7.8 per cent, month-on-month.

NERC said the industry’s collection efficiency declined to 79.71 per cent in June from the previous month, representing a 2.61 percentage-point drop.

The decline came despite the DisCos receiving electricity valued at N315.73 billion during the month. Of this amount, N240.71 billion was billed to customers, representing a billing efficiency of 76.24 per cent.

The figures therefore point to two separate weaknesses across the distribution segment: a portion of electricity supplied was not billed, while a significant amount of what was billed was also not recovered as cash.

NERC’s data showed that the industry’s revenue recovery efficiency also weakened during the month.

The average allowed tariff stood at N130.15 per kilowatt-hour, while the actual average amount collected was N96.63/kWh, resulting in a revenue recovery efficiency of 74.24 per cent.

This represented a 3.07 percentage-point decline from May.

Performance varied significantly among the DisCos.

Benin Electricity Distribution Company recorded the highest collection efficiency at 94 per cent, followed by Ikeja Electric at 89 per cent and Eko Electricity Distribution Company at 88.64 per cent.

At the other end, Kano Electricity Distribution Company recorded a collection efficiency of 42.16 per cent, Kaduna Electricity Distribution Company recorded 46.13 per cent, while Jos Electricity Distribution Company recorded 55.18 per cent.

The June performance comes as liquidity remains a major concern across Nigeria’s electricity market, with weak collections limiting the ability of distribution companies to meet their financial obligations across the power value chain.

The latest figures therefore underscore the challenge of converting electricity supplied and billed to customers into actual cash, even as the sector continues to undergo reforms aimed at improving commercial viability and electricity supply.