DisCos rake in N801bn as metering boosts power windfall

Nigeria’s electricity distribution sector recorded a strong financial performance in the first four months of 2026, with Electricity Distribution Companies (DisCos) collecting a combined N801.16 billion from customers between January and April, according to data from the Nigerian Electricity Regulatory Commission (NERC).

BusinessDay’s analysis showed that the amount represented a six percent increase compared with the revenue collected during the corresponding period in 2025, suggesting that wider adoption of electricity meters is improving collections, according to industry analysts.

NERC’s commercial performance factsheets showed that the 11 electricity distribution companies generated N204.74 billion in January, N196.68 billion in February, N196.13 billion in March and N203.61 billion in April, bringing total collections for the four-month period to N801.16 billion.

The regulator reported that the DisCos issued electricity bills worth N1.01 trillion over the same period, but recovered only N801.16 billion, leaving an outstanding balance of N207.77 billion.

According to NERC’s latest factsheet, total customer billings rose to N252.43 billion in April, while revenue collections reached N203.61 billion. This resulted in an additional N48.82 billion in unrecovered revenue for the month. Billing efficiency stood at 83.32 percent, while collection efficiency improved marginally to 80.66 percent.

Among the distribution companies, Eko Electricity Distribution Company recorded one of the strongest revenue recovery performances, achieving a recovery efficiency of 102.09 percent in April. Port Harcourt, Abuja, Ikeja and Benin DisCos also posted recovery efficiencies above 85 percent.

“I strongly believe that we are seeing the impact of more metering, which is allowing them (DisCos) to collect more,” said Adetayo Adegbemle, a power sector analyst and Executive Director of PowerUp Nigeria, in an interview with BusinessDay.

As of December 2025, about seven million electricity customers in Nigeria had been metered, up from approximately six million in 2024, according to data from the National Bureau of Statistics.

Adegbemle said that increased meter installations have significantly improved distribution companies’ ability to recover revenue from consumers.

“I strongly believe that we are seeing the impact of more metering, which is allowing them to collect more. If they listen to us and do everything possible to close the metering gap, they will achieve even higher revenue collections,” he said.

To accelerate meter deployment, NERC introduced the Meter Acquisition Fund (MAF) scheme in 2024. The initiative was designed to address distribution companies’ weak creditworthiness by creating a reliable revenue stream to support long-term financing for end-user meter deployment.

The commission explained that the inability of electricity distribution companies to secure financing through debt or equity had remained the biggest obstacle to acquiring and installing customer meters and to funding other critical infrastructure investments.

The Federal Government has also announced plans to install seven million electricity meters nationwide under a comprehensive reform programme aimed at eliminating estimated billing, strengthening revenue collection and rebuilding confidence in Nigeria’s electricity sector.

The initiative comes as national metering coverage has increased to around 57 percent, reflecting steady progress in reducing the metering gap that has left millions of consumers vulnerable to estimated and disputed electricity bills.

Olu Verheijen, Special Adviser to the President on Energy, said the seven million-meter rollout would be carried out through the Presidential Metering Initiative, alongside a separate World Bank-supported programme designed to accelerate nationwide meter deployment.

“Metering protects consumers. It reduces estimated billing, and it builds the commercial discipline that investment requires,” a government representative said.

The metering programme is expected to improve transparency in electricity billing, strengthen revenue collection by distribution companies and support broader efforts to place Nigeria’s power sector on a more sustainable financial footing.

For many years, estimated billing has remained one of the most controversial issues in Nigeria’s electricity market, triggering persistent consumer complaints and weakening trust between electricity customers and distribution companies.

The government said the expanded meter rollout forms part of wider reforms aimed at stabilising the electricity value chain and attracting new investment into the country’s power sector.