Nigerian Discos Generate N603.64bn Amid N321bn Subsidy

In the second quarter of 2026, the 11 electricity Distribution Companies (Discos) in Nigeria generated a total revenue of N603.64 billion, an increase from N597.56 billion in the first quarter. The Nigerian Electricity Regulatory Commission (NERC) reported that the revenue collected represented an 81.06% collection efficiency, up from 78.95% in Q1 2026.

Despite this revenue growth, the federal government incurred a tariff subsidy obligation exceeding N321 billion to bridge the gap between cost-reflective electricity tariffs and consumer tariffs. This subsidy requirement decreased by N37.06 billion from the previous quarter.

The monthly breakdown of the subsidy included N108.40 billion in April, N112.93 billion in May, and N99.93 billion in June. The report indicated that Benin Disco had the highest collection efficiency at 92.68%, while Kano Disco had the lowest at 47.74%.

The subsidy mechanism operates under the Disco’s Remittance Obligation framework, which was implemented in January 2024.