70% of Power Plants Sit Idle as Discos Collect N204bn Revenue

 

Fresh operational data from the Nigerian Electricity Regulatory Commission (NERC) has revealed a deepening crisis in the nation’s power sector, with 70 per cent of Nigeria’s installed power generation capacity sitting idle throughout March 2026. 

This challenge persisted even as electricity Distribution Companies (Discos) successfully extracted over N204.74 billion from consumers in a single month, highlighting a sharp disconnect between revenue collection and service delivery.

According to the NERC’s Operational Factsheets for March, the plant availability factor across 28 grid-connected plants plummeted to just 30 per cent. This means that out of a total installed capacity of 13,625 megawatts, only an average of 4,089 megawatts was available for dispatch to the national grid. 

The data painted a grim picture of “stranded” infrastructure, with several multi-billion naira plants contributing zero electricity to the national pool during the period under review, and as Nigerians continue to search for alternatives to supply from the national grid.

The documents from the regulator identified Alaoji One, Omotosho 2, and Ibom Power 1 as having recorded zero availability for the month. Other major facilities, including Sapele Steam 1 with installed capacity of 720MW and Rivers 1 with 180MW, operated at a negligible 2 per cent and 1 per cent availability respectively.

Even the nation’s flagship “top 10” producers struggled to maintain mechanical health, with Egbin 1 recording only 35 per cent availability and the Zungeru hydro plant hovering at 40 per cent.

But despite this generation slump, the commercial machinery of the 11 Discos remained aggressive, the commercial operations fact sheet indicated. According to the latest data from NERC, in January 2026, the sector recorded total billings of N268.20 billion, out of which N204.74 billion was successfully collected from consumers. 

This represented a collection efficiency of 76.34 per cent. Leading the revenue charts were Ikeja Electric and Eko Disco, which raked in N38.80 billion naira and 35.88 billion  respectively, maintaining high financial returns despite the widespread instability of the national grid. With 70 per cent of the nation’s power plants currently idle and supply remaining erratic, the rising collection by the Discos, seems also like a paradox.

An analysis of the NERC report further revealed that the physical infrastructure of the grid continues to remain under severe distress. In March 2026, both voltage and frequency levels consistently breached the “safe” regulatory limits.

The monthly average upper grid voltage hit 350.20 kilovolts, exceeding the prescribed limit of 346.50 kilovolts. Similarly, the grid frequency fluctuated to a high of 50.80 hertz, well above the 50.25 hertz target. These fluctuations not only damage household appliances but also pose a constant threat of total system collapse, further discouraging Discos from taking up more power even when available.

Also the data showed that NERC is implementing a new, more stringent Aggregate Technical, Commercial, and Collection (ATC&C) loss target which took effect in January 2026. NERC slashed the average loss targets from 20.54 per cent in 2025 to 16.92 per cent for the current year. The immediate impact has been a visible decline in the “recovery efficiency” of the Discos. On average, recovery performance dropped to 69.16 per cent in January, a 3.15 per cent decrease from the previous year’s performance.

“Effective January 2026, the commission approved the reduction in the ATC&C loss targets of the Discos to reflect the expected impact of the investments made by Discos in Year 2025. The significant decrease observed in the Discos revenue recovery performance in January 2026 is as a result of the application of the approved ATC&C targets for Y2026,” the fact sheet stated.

Overall, the Yola Disco recorded the most significant slump following the new targets, with its recovery efficiency crashing by 14.85 per cent. Other major hubs like Abuja and Port Harcourt also saw negative variances of over 3 per cent. 

Also, the disparity in regional performance remains a major hurdle for the industry. While the average allowed tariff was set at N124.30 per kilowatt-hour, the actual average collection across the country stood at only N85.97. 

In northern hubs like Kaduna and Jos, the actual collection was as low as N44.20 and N54.08  respectively, the data showed, with the areas currently recording recovery efficiencies below 45 per cent, effectively operating at a loss while the more commercially viable southern Discos carry the financial weight of the sector. The NERC factsheet also indicated a decline in billing efficiency, which fell by 3.21 per cent to reach 79.72 per cent in the first month of the year. This suggested that even as Discos focus on collecting cash, the accuracy and coverage of their billing systems are slipping.