Electricity Distribution Companies in Nigeria failed to collect a significant portion of their expected earnings in June, leaving a wide revenue gap in the power sector.
According to data released by the Nigerian Electricity Regulatory Commission, NERC, DisCos were unable to recover N123.8 billion from electricity supplied during the month. The figure highlights the gap between energy billed and actual payments received.
NERC’s report showed a decline in collection efficiency across several distribution companies. This means that despite distributing power to homes and businesses, many DisCos did not get paid for a large share of the energy delivered.
Industry analysts link the shortfall to factors such as unpaid bills, estimated billing disputes, energy theft, and customers’ inability to pay due to economic pressures. The trend continues to strain the finances of the power value chain.
Experts say closing the revenue gap will require improved metering, stricter enforcement against illegal connections, and better customer engagement. Without stronger collection rates, the liquidity challenges in the electricity sector are expected to persist.
Nigerian DisCos Record N123.8 Billion Revenue Shortfall in June
