By Mary Izuaka

 

Nigeria’s 11 electricity distribution companies (DisCos) generated ₦603.64 billion in combined revenue for the second quarter of 2026, the quarterly report by the Nigerian Electricity Regulatory Commission (NERC) said.

The document released by NERC on Monday, said all DisCos collected ₦603.64 billion in revenue in 2026/Q2 out of ₦744.67 billion billed to customers.

This, it said, translates to a collection efficiency of 81.06 per cent, representing an increase of 2.11pp compared to 2026/Q1 (78.95 per cent).

The report said the weighted average Aggregate Technical, Commercial and Collection (ATC&C) loss across all DisCos in 2026/Q2 was 36.23 per cent, comprising technical and commercial loss (21.33 per cent) and collection loss (18.94 per cent).

The ATC&C loss of 36.23 per cent is 19.31 percentage points (pp) higher than the 2026 MYTO target (16.92 per cent) and translates to a cumulative revenue loss of ₦129.073 billion across all DisCos.

“The ATC&C loss decreased by 1.21 pp (better performance) compared to 2026/Q1 (37.44 per cent).

“All the DisCos failed to meet their ATC&C targets during the quarter, with Kaduna DisCo recording the worst underperformance relative to the target (Actual – 67.70 per cent vs target – 18.18 per cent),” it said.

The regulator explained that the ATC&C loss comprises billing losses incurred by a DisCo due to its inability to bill 100 per cent of energy delivered to customers (technical and commercial losses); and collection losses arising from the DisCo’s inability to collect 100 per cent of the bills issued to customers.

Remittance

On market remittance, NERC said in 2026/Q2, the cumulative upstream invoice payable by DisCos was ₦410.38 billion, consisting of ₦326.46 billion for DRO-adjusted generation costs from Nigeria Bulk Electricity Trading Plc (NBET) and ₦83.92 billion for transmission and administrative services by the Market Operator (MO).

Out of this amount, it said the DisCos collectively remitted a total sum of ₦385.44 billion (₦306.62 billion for NBET and ₦78.82 billion for MO) with an outstanding balance of ₦24.94 billion.

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“This translates to a remittance performance of 93.92 per cent in 2026/Q2 compared to the 94.08 per cent recorded in 2026/Q1,” it said.

It noted that in 2026/Q2, the three international bilateral customers purchasing power from the grid-connected Generation Companies (GenCos) made a cumulative payment of $8.675 million against the $18.84 million invoice issued by the MO for services rendered in 2026/Q2 (remittance rate:46.02 per cent).

Furthermore, it said domestic bilateral customers made a cumulative payment of ₦6,912.92 million against the ₦7,551.70 million invoice issued by the MO for services rendered in 2026/Q2 (remittance rate: 91.54 per cent).

Energy offtake performance

The report said in 2026/Q2, the average energy offtake by DisCos at their trading points was 3,197.03MWh/h, which represents a decrease of 112.45MWh/h (-3.40 per cent) compared to the average offtake recorded in 2026/Q1 (3,309.48MWh/h).

“Cumulatively, DisCos recorded an overall offtake performance of 94.07 per cent; the available Partially Contracted Capacity (PCC) during the quarter was 3,398.41MWh/h,” it said.