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DisCos earn N801bn despite persistent electricity blackouts

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Electricity distribution companies collected a total of N801.16bn from electricity consumers between January and April 2026 despite persistent power outages and supply constraints across the country, data obtained from the Nigerian Electricity Regulatory Commission has shown.

The commercial performance factsheets released by the regulator showed that the 11 DisCos collected N204.74bn in January, N196.68bn in February, N196.13bn in March and N203.61bn in April, bringing total revenue for the four-month period to N801.16bn.

The collections came even as households and businesses endured months of unstable electricity supply caused largely by gas shortages that crippled power generation and forced widespread load shedding, especially in February and March.

According to the NERC data, the DisCos billed customers N1.01tn between January and April but recovered N801.16bn, leaving about N207.77bn in uncollected revenue during the period.

In January, the companies billed customers N268.20bn and collected N204.74bn, leaving N63.46bn outstanding. Billing efficiency stood at 79.72 per cent, while collection efficiency was 76.34 per cent.

In February, total billings fell to N242.29bn, with collections of N196.68bn, resulting in N45.61bn in uncollected revenue. Billing efficiency improved to 87.44 per cent, while collection efficiency rose to 81.17 per cent.

March recorded total billings of N246.43bn and collections of N196.13bn, leaving N50.30bn outstanding. Billing and collection efficiencies stood at 83.89 per cent and 79.59 per cent, respectively.

The latest NERC factsheet showed that in April, total billings increased to N252.43bn, while revenue collected stood at N203.61bn. This left another N48.82bn uncollected during the month. Billing efficiency was 83.32 per cent, while collection efficiency improved slightly to 80.66 per cent.

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The reports also showed that significant volumes of electricity supplied to the distribution companies were not billed during the four months, reflecting continued metering gaps and commercial losses in the sector.

Among the utilities, Eko Electricity Distribution Company remained one of the strongest performers in revenue recovery, posting a recovery efficiency of 102.09 per cent in April. Port Harcourt, Abuja, Ikeja and Benin DisCos also recorded recovery efficiencies above 85 per cent.

However, Kaduna, Kano, and Jos DisCos continued to lag behind. Kaduna posted a recovery efficiency of 43.15 per cent in April, while Kano and Jos recorded 51.87 per cent and 52.48 per cent respectively.

The revenue performance comes against the backdrop of prolonged electricity shortages experienced during the first quarter of the year.

During the period, electricity generation dropped sharply as inadequate gas supply forced several thermal power plants to shut down or reduce output. At some points, national generation fell from around 4,000 megawatts to below 2,000MW, prompting the Transmission Company of Nigeria to ration the limited electricity available to distribution companies.

Operational data released by the Nigerian Independent System Operator showed that thermal power plants require an estimated 1,629.75 million standard cubic feet of gas per day to operate optimally. However, as of February 23, actual gas supply was about 692 million standard cubic feet per day, representing less than 43 per cent of the requirement.

 

 

Throughout the period, distribution companies repeatedly informed customers that the widespread outages were caused by generation shortfalls arising from inadequate gas supply.

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Although electricity supply began to recover gradually towards the end of April, consumers have continued to express concerns over high electricity tariffs, estimated billing, and poor service delivery.

Stakeholders have also continued to advocate improved metering, reduced energy theft, and stronger infrastructure investment to enhance the financial and operational performance of the electricity distribution companies.

Meanwhile, the Lagos State Electricity Regulatory Commission has said electricity supply licensees cannot recover charges that are more than 12 months old. The commission disclosed this in a consumer awareness message recently published on its official social media platform as part of efforts to enlighten electricity consumers on their rights.

According to LASERC, consumers should not be made to pay charges older than 12 months except in cases involving meter tampering, illegal use of electricity, or obstruction of meter reading.

“Electricity supply licensees cannot recover charges older than 12 months, except in cases of meter tampering, illegal use, and obstruction of meter reading,” LASERC said.

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US Government Warns American Business Executives About Investing In Nigeria

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A United States Department of State report has warned American business executives in Nigeria.

The department warned that insecurity, corruption, port inefficiencies, and regulatory uncertainty could significantly hinder investment in Nigeria.

It was reports that the department gave the warning in its 2026 Investment Climate Statements on Nigeria.

The report explained that those challenges continue to weigh on the country’s business environment despite signs of macroeconomic stability.

The department said the country’s investment landscape has been shaped by the outcomes of “painful but necessary” structural reforms introduced by the President Bola Tinubu administration.

The report said the removal of fuel subsidies and liberalisation of the foreign exchange market initially triggered significant economic volatility, although early 2026 indicators suggested some stabilisation.

However, it warned that security concerns, administrative bottlenecks and the social consequences of economic reforms remain significant considerations for foreign investors.

“The security environment is a primary variable which gives pause to potential investors,” the report said.

It noted that although attacks on oil infrastructure in the Niger Delta have decreased, oil theft and illegal bunkering persist.

In the North, the expansion of terrorist and ‘bandit’ groups continues to degrade the climate for agribusiness and mining,” the document added.

The report also raised concerns about how regulators treat foreign business executives in disputes, citing the detention of Tigran Gambaryan, a US citizen and Binance executive, for nearly eight months in 2024.

“Furthermore, the use of coercive exit bans and detentions, highlighted by the high-profile nearly eight-month detention in 2024 of U.S. citizen Binance employee Tigran Gambaryan, serves as a cautionary note for foreign executives regarding the risks of aggressive regulatory friction,” it said.

See also  States pay N455bn to service foreign loans

The report said such cases could shape perceptions of Nigeria as a destination for foreign investment.

The department identified inefficiencies at Nigerian seaports as another major challenge for businesses, particularly those dependent on imports and exports.

“Port inefficiency remains a significant ‘hidden tax’ on investment,” the report said.

It noted that the Lekki Deep Seaport handled $9.6 billion in trade in 2025 and operated at 50 per cent capacity, helping to ease pressure on older facilities.

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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