Nigeria electricity subsidy drops as DisCo collection efficiency hits 81.95%

The Nigerian Electricity Regulatory Commission (NERC) has reported significant shifts in the country’s power sector performance for mid-2026. In the second quarter of 2026, the Federal Government’s electricity subsidy obligation decreased by N37.06 billion to N321.26 billion, a 10.34% decline from the first quarter. This reduction was primarily driven by a 3.40% drop in electricity offtake by distribution companies (DisCos).

Regarding commercial performance, DisCos collected N205.53 billion of the N250.79 billion billed to customers in July 2026, representing an 81.95% collection efficiency. Eko DisCo recorded the highest collection efficiency at 101.78%, while Jos and Kaduna recorded the lowest revenue recovery efficiencies at 46.27% and 39.71%, respectively.

On the generation side, power plants connected to the national grid generated an average of 4,102 megawatts (MW) per hour in August, utilizing 86% of the average available generation capacity of 4,758MW.