Power Firms Collect N204bn as Losses Hit N131bn
Nigerian power distribution companies recorded a total revenue of N204.74 billion in January 2026, despite incurring losses estimated at N131 billion due to operational inefficiencies.
Industry data indicates that while revenue collection improved during the period, significant gaps in billing, metering, and energy distribution continue to undermine the sector’s financial stability.
Analysts attribute the losses to factors such as energy theft, inadequate infrastructure, and poor cost recovery mechanisms, which have long plagued the power sector.
The development highlights ongoing liquidity challenges, with stakeholders warning that persistent losses could hinder investments and service improvements.
Experts have called for urgent reforms, including enhanced metering systems, stricter enforcement against power theft, and improved operational efficiency across distribution networks.
They also stressed the need for coordinated efforts among regulators, operators, and government agencies to address structural issues affecting the industry.
Despite the revenue gains, the widening deficit underscores the fragile state of Nigeria’s power sector and the need for sustainable solutions to ensure reliable electricity supply.
The situation continues to raise concerns among consumers and investors, as efforts to stabilise the sector remain a key priority for economic growth.
