DisCos’ revenue rises 450% as debt profile hits N700bn

DisCos collected much more money in the first half of 2026 than during the same period in 2018. Yet a large share of the electricity they received was not converted into payments. This matters because revenue growth has not matched growth in supply or collection efficiency.

In the first half of 2018, DisCos collected N218.16 billion. By the first half of 2026, collections had reached N1.2 trillion, an increase of about 450 per cent. During the same period, electricity supply rose only 4.8 per cent, from 16,861GWh to 17,668GWh. DisCos received energy worth N1.9 trillion in 2026 but collected N1.2 trillion.

That left N700.53 billion unpaid in the first half of 2026. The figures show a widening gap between market energy costs and consumer payments. They also raise questions about whether higher revenue is translating into better supply and service, especially as many Nigerians still lack electricity access.

Electricity Distribution Companies, or DisCos, are the businesses responsible for the final distribution of electricity. They receive power from the wider electricity market and deliver it through local networks to consumers. They also meter, bill, and collect payments from customers. These functions make DisCos central to both service delivery and sector finances.

Nigeria had 11 DisCos handed to private investors during the 2013 privatisation. NERC data tracks their revenue, the energy they receive, and the money they fail to collect. In the first half of 2026, DisCos received N1.9 trillion worth of energy but collected N1.2 trillion from consumers.

Their performance therefore affects both electricity access and the money available within the power system. The article highlights a major concern: DisCos’ revenue rose sharply, but supply improved only slightly. The REA estimates that about 85 million Nigerians still lack access to electricity, showing the scale of the remaining challenge.

The gap measures how differently money collected by DisCos and electricity delivered changed over eight years. Revenue growth was enormous, but electricity supply barely moved. This matters because consumers and policymakers may expect higher collections to support better service and greater access.

From the first half of 2018 to the first half of 2026, DisCos’ revenue increased from N218.16 billion to N1.2 trillion. That was an increase of about N983.04 billion, or 450 per cent. Electricity supply rose from 16,861GWh to 17,668GWh, only 4.8 per cent. Average available generation capacity also fell 41 per cent, from 7,565.5MW to 4,456MW.

The comparison does not prove that revenue caused or prevented supply changes. It does show that collections expanded far faster than the amount of electricity supplied. That divergence has intensified concerns about service delivery, sector efficiency, and the results of privatisation after 13 years.

DisCos’ shortfall means they collected far less from consumers than the value assigned to the electricity supplied to them. That gap matters because the power market depends on payments moving through the system. A persistent shortfall can increase financial pressure on utilities and other participants.

In the first half of 2026, DisCos received N1.9 trillion worth of energy but collected only N1.2 trillion. NERC recorded the difference as N700.53 billion. This was not a small billing variance; it represented a substantial portion of the energy value received during the period.

The article does not state the exact consequences of the shortfall. It does show that DisCos’ debt profile hit N700 billion in the last six months and that concerns remain about service delivery. If the gap persists, the sector’s ability to fund reliable operations and improve supply could face greater pressure, while consumers may continue experiencing weak service despite rising collections.

The article describes the 2013 privatisation and its structure, but it does not give a stated reason for why the sector was privatised. The change transferred much of the power industry to private investors while leaving the transmission segment under Federal Government control. That division created the Nigerian Electricity Supply Industry, or NESI.

In November 2013, generation plants and 11 distribution companies were handed to private investors. The private generation companies operate the plants, while DisCos distribute electricity and collect payments from consumers. The Federal Government retained control of transmission, the segment that carries electricity across the national network.

The arrangement was meant to organise the sector across generation, transmission, and distribution, but the article reports continuing concerns 13 years later. Average available capacity fell from 7,527MW in 2016 to 5,398MW in 2025, even as installed capacity exceeded 13,000MW. More than N10 trillion in public investment has also gone into the sector.

Installed capacity describes the maximum rated output of power plants. It does not mean that all plants are operating, available, or producing electricity at that level. Supply can remain low when plants are unavailable or when the wider system cannot move all generated power to users.

Nigeria had installed generation capacity of more than 13,000MW by 2025. Yet average available capacity was only 5,398MW, and average generation was 4,475MW. In 2016, average available capacity was 7,527MW, while actual average generation stood at 3,276MW. These figures show the difference between what plants are designed to produce and what they can actually provide.

The article does not identify every cause of the decline in available capacity. It does show that available capacity fell 28.3 per cent from 2016 to 2025, even while installed capacity grew. The result is a system with a large headline capacity but much less electricity reaching consumers.

In the standard power-system flow, generation plants produce electricity first. Transmission networks carry that electricity over longer distances. DisCos then receive it and distribute it through local networks to homes, businesses, and other consumers. This chain matters because a weakness at any stage can reduce the electricity users receive.

Capacity is the amount a plant or system could produce under its rating or operating conditions. Generation is the electricity the plants actually produce. Supply is the electricity delivered through the market or network to users. The article illustrates the differences: in 2025, installed generation capacity exceeded 13,000MW, average generation was 4,475MW, and annual electricity supply was 31,251GWh.

The figures show why installed capacity alone cannot measure consumer service. Average available capacity was 5,398MW in 2025, below installed capacity. The article also reports that annual supply fell 15.7 per cent from 2024 to 2025, despite DisCos’ revenue rising sharply.