The Nigerian Electricity Supply Industry has recorded a N14.3 per kilowatt hour reduction in subsidy exposure for customers under the Distribution Companies in February 2026 according to data released by the Nigerian Electricity Regulatory Commission.
The report contained in the February 2026 factsheet on the commercial performance of DisCos shows improved revenue collection and reduced subsidy burden compared to January.
According to the report, the actual average electricity tariff stood at N124.30 per kilowatt hour while the average amount collected from customers was N100.27 per kilowatt hour.
The difference between the allowed tariff and actual collection represents the subsidy provided in the electricity market by the Federal Government.
In February, the subsidy per kilowatt hour reduced to N24.03 from N38.33 recorded in January, marking a decline of N14.3 within one month.
The commission explained that the improvement reflects ces in market performance and collection efficiency across the electricity distribution sector.
Total energy received by the eleven DisCos from the Nigerian Independent System Operator was valued at N277.09 billion during the period under review.
However, the DisCos were only able to collect N196.6 billion from customers out of N242.29 billion billed, leaving a revenue shortfall of N80.49 billion.
Despite the gap, billing efficiency improved to 87.44 percent while collection efficiency stood at 81.17 percent for February.
The report also indicated that average recovery efficiency across all DisCos was 80.67 percent during the month.
The regulator noted that improvements in efficiency are linked to ongoing reforms and investments in the electricity distribution network.
It also disclosed that the commission has approved reduced Aggregate Technical Commercial and Collection loss targets for 2026, averaging 16.64 percent, to reflect expected gains from investments made in 2025.
The electricity sector continues to face challenges including revenue leakages, energy losses, and liquidity constraints, which affect the overall performance of the industry.
The reduction in subsidy gap is seen as a positive development in the ongoing effort to improve financial sustainability within the Nigerian power sector while maintaining service delivery to consumers.
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