ABUJA — Electricity consumers across Nigeria paid a total of N196.68 billion for power consumed in February 2026, despite ongoing complaints over poor electricity supply, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).
The data, contained in the Commission’s Commercial Performance Report of Distribution Companies, showed that revenue collected by distribution companies (DisCos) dropped by 3.9 per cent compared to January, when N204.75 billion was recorded.
NERC stated that the DisCos achieved a collection efficiency of 81.17 per cent during the month, having billed customers N242.29 billion but recovered only part of the amount, leaving about N45.61 billion uncollected.
The report further revealed that the electricity distribution firms recorded losses of N34.8 billion due to billing inefficiencies, even though they received power worth N277.09 billion from generation companies within the period.
Expert warns on structural flaws in power sector
Reacting to the continued underperformance of the sector, energy expert Wumi Iledare said Nigeria’s electricity challenges cannot be resolved without a shift in policy thinking from “what is” to “what ought to be.”
He argued that the power sector is being treated largely as a technical system, when in reality it is driven by economics, governance, and institutional efficiency.
“Technology delivers electrons; economics determines whether those electrons are affordable, available, reliable, and sustainable,” he said.
Iledare warned that tariff adjustments alone cannot fix deeper structural problems such as weak cost recovery, poor market design, fuel insecurity, transmission bottlenecks, and inconsistent policy implementation.
He also criticised Nigeria’s use of band-based electricity pricing, describing it as “primitive” and comparable in inefficiency to the estimated billing system.
According to him, ongoing reforms have overemphasised decentralisation without first building strong institutions and a functional market structure, leading to liquidity challenges and revenue shortfalls across the sector.
The professor further faulted consumer categorisation in the sector, noting that residential, commercial, and industrial users have distinct consumption patterns and economic roles that should be reflected in pricing policies.
He stressed that industrial users, in particular, are critical to national productivity and job creation and should be supported with more efficient and reliable power frameworks.
Iledare concluded that Nigeria moved too quickly away from a vertically integrated electricity model without establishing the regulatory and infrastructural capacity needed for a competitive market, resulting in systemic inefficiencies and weak coordination in the sector.
He called for a more deliberate, development-focused electricity policy that clearly defines the type of power system required to drive industrialisation, energy security, and inclusive economic growth.
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