Nigeria’s power distribution companies lost N310 billion ($230 million) in the first quarter of 2026, driven by unbilled energy and poor collections, regulatory data shows. The Nigerian Electricity Regulatory Commission reported that the 11 utility firms failed to capture a significant portion of power supplied, while failing to collect revenue from billed customers.

Data from the regulator showed total losses during the three-month period split between N150.36 billion ($110.5 million) in unbilled electricity and N159.37 billion in uncollected customer bills. In January, distribution companies received energy valued at N336.43 billion ($248 million) but billed just N268.20 billion ($197.1 million) to their consumer base.

The utilities managed to collect only N204.74 billion ($152 million) of that January bill, leaving N63.46 billion ($48 million) unpaid. This translated to a billing efficiency of 79.72 percent and a collection efficiency of 76.34 percent. Consequently, the overall revenue recovery rate for the opening month of the year ended at 69.16 percent.

Grid challenges anchor regional disparities

Operational results improved slightly in February when energy supply value dropped to N277.09 billion ($205 million). The distributors billed customers N242.29 billion ($180 million) and successfully collected N196.68 billion ($145 million). This bumped billing efficiency to 87.44 percent and collection efficiency to 81.17 percent, the highest recovery rate of the quarter.

March saw energy supplies climb to N293.76 billion ($218 million), with companies billing N246.43 billion ($182 million). Revenue collections reached N196.13 billion ($144.2 million), leaving N50.30 billion ($37 million) uncollected. For the entire quarter, customers accumulated N159.37 billion ($117.2 million) in new unpaid debt, crimping sector cash flows.

Performance varied widely across regional markets, though Lagos-based Eko and Ikeja firms outpaced peers. Eko Electricity Distribution Co. pushed its February recovery rate past 100% by recovering historical debts. Power sector officials say missing meters, illegal hookups, and weak enforcement continue to choke the industry’s wider financial supply chain.

Industrial power theft bleeds Nigerian grid

Highlighting these systemic leaks, the Nigerian Independent System Operator recently uncovered massive electricity theft on a major industrial corridor. Officials reported losing about 180 megawatts of electricity along the Ikorodu-Sagamu transmission line. The line spans industrial sections of Lagos and Ogun states, serving several large corporate consumers.

Abdu Mohammed Bello, managing director of the system operator, disclosed the findings at a Lagos industry meeting. Bello stated that field investigations revealed widespread meter tampering and illegal taps. Some large industrial customers connected to the Ikeja and Ibadan networks were linked to the illicit power draw, he said.

“The magnitude of the thefts is unimaginable,” Bello said, noting the 180-megawatt loss equals the daily allocation of some regional grids. “We consulted the Nigerian Electricity Regulatory Commission and made a presentation. They saw the scale of it and supported further steps to address this menace.”