Electricity consumers across Nigeria paid a total of N196.68bn for power in February 2026 despite ongoing complaints over poor and unstable electricity supply, latest data from the Nigerian Electricity Regulatory Commission (NERC) has revealed.
The figure represents a 3.9 per cent drop compared to the N204.75bn collected by electricity distribution companies (DisCos) in January, indicating a decline in monthly revenue performance within the sector.
According to NERC’s February report on the commercial performance of DisCos, the utilities achieved a collection efficiency of 81.17 per cent. This was after billing customers N242.29bn for electricity consumed during the period.
However, the report showed that about N45.61bn remained uncollected, underscoring persistent revenue leakages and payment inefficiencies in the sector.
In addition, the electricity distribution companies recorded significant financial losses arising from billing inefficiencies. NERC disclosed that the firms incurred about N34.8bn in losses, despite receiving electricity worth N277.09bn from generation companies within the month under review.
The development highlights continued structural and operational challenges confronting Nigeria’s power sector, particularly in the areas of revenue recovery, energy accounting, and market efficiency.
Meanwhile, energy expert, Prof. Wumi Iledare, has faulted the persistent underperformance of the sector, arguing that Nigeria’s electricity challenges go beyond technical fixes and tariff reviews.
According to him, the crisis in the power sector will remain unresolved unless policymakers shift attention from “what is” to “what ought to be” in designing electricity market reforms.
He noted that while much of the debate has focused on engineering solutions, electricity systems are fundamentally driven by economics, institutional capacity, and public policy frameworks.
“Technology delivers electrons; economics determines whether those electrons are affordable, available, reliable and sustainable,” Iledare said.
The professor argued that tariffs should not be treated as the starting point of reform but rather as outcomes of deeper structural realities, including cost recovery mechanisms, fuel supply stability, transmission constraints, governance efficiency and policy consistency.
He further criticised ongoing reforms centred on decentralisation, warning that fragmentation without a coherent industrial policy could worsen inefficiencies in the sector.
Iledare also raised concerns over consumer classification in the electricity market, stressing that residential, commercial and industrial users have different consumption patterns and economic roles that must be properly reflected in pricing frameworks.
According to him, Nigeria’s rapid shift away from a vertically integrated electricity system was not matched with adequate institutional strengthening, regulatory depth and infrastructure development, a gap that has contributed to liquidity challenges and persistent revenue shortfalls.
He called for a deliberate shift towards electricity sector economics and development-focused policy planning, insisting that Nigeria must first define the kind of power system required to support industrialisation, energy security and inclusive growth before designing market structures around it.
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