Nigeria’s electricity distribution companies (DisCos) collected approximately ₦1.2 trillion in the first half of 2026, representing a 450% increase from the corresponding period in 2018.
However, electricity supplied to consumers increased by just 4.8% over the same period.
The figures raise an important question for Nigerian households and businesses: Why have electricity collections increased so sharply while growth in power supply remains limited?
According to an analysis of Nigerian Electricity Regulatory Commission (NERC) data published by Vanguard on October 19, the electricity sector continues to face major financial and operational challenges.
How Much Have DisCos Collected?
NERC figures show that DisCos collected ₦218.16 billion during the first six months of 2018.
By the first half of 2026, collections had increased to approximately ₦1.2 trillion.
However, electricity supply rose from 16,861 gigawatt-hours to 17,668 gigawatt-hours during the same period.
The figures represent a substantial increase in nominal revenue but relatively limited growth in the volume of electricity delivered.
Problems at any stage can affect the amount of power available to customers.
Importantly, a 450% increase in collections does not mean that every electricity customer’s bill increased by the same percentage.
Changes in tariffs, payment collection rates and other financial factors can influence total revenue.
Why Is Electricity Supply Still Struggling?
Nigeria’s electricity industry faces challenges across generation, transmission and distribution.
Although distribution companies collect payments from consumers, electricity must first be generated and transmitted through the national network.
According to the NERC data analysed by Vanguard, average available generation capacity fell from approximately 7,565.5 megawatts in the first half of 2018 to 4,456 megawatts in the corresponding period of 2026.
This represents a decline of about 41%.
The figures highlight the need for stronger infrastructure, improved operational efficiency and sustained investment across the electricity supply chain.
What About the ₦700bn Collection Gap?
The same report showed that DisCos received electricity valued at approximately ₦1.9 trillion during the first six months of 2026.
However, they collected about ₦1.2 trillion from consumers.
This left a collection shortfall of approximately ₦700.53 billion.
The gap raises additional concerns about the financial sustainability of the sector.
Insufficient revenue recovery can weaken the ability of electricity companies to meet financial obligations and invest in infrastructure.
What Rights Do Electricity Consumers Have?
Nigerians have the right to challenge incorrect electricity bills and report poor service.
According to NERC, electricity customers are entitled to transparent billing and a formal complaints process.
Customers who believe they have been overcharged should submit a written complaint to their distribution company’s Customer Complaints Unit.
They should keep the acknowledgement and supporting evidence, including bills, payment receipts and meter details.
If the complaint remains unresolved or the response is unsatisfactory, customers can escalate the matter to the appropriate NERC Consumer Forum.
What Needs to Change?
The revenue figures highlight the importance of measuring electricity sector performance beyond the amount of money collected.
Improvements in generation availability, network reliability, customer metering and billing transparency remain essential.
For consumers, the central issue is whether electricity payments translate into more dependable service.
As the sector continues to face financial and operational challenges, attention will remain on how effectively increased collections support improvements in power delivery.
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