Why Nigerians Still Pay for Electricity Without Reliable Power

In May 2026, electricity distribution companies reportedly collected about ₦208 billion from consumers but received power worth ₦328.95 billion for distribution, according to NERC’s commercial performance factsheet. Even if every naira collected was remitted, the sector would still face a shortfall of roughly ₦121 billion for that month. The wider problem is the mounting debt between DisCos, generation companies and the government. While many consumers pay their bills and more households are being metered, the current tariff structure and unpaid subsidies continue to leave the power value chain unable to recover its costs. Professor Bart Nnaji argues that reliable electricity cannot be sustained at prices that keep producers and distributors operating at a loss. Grid power may be expensive, but it is still far cheaper than relying on diesel generators. We cannot expect full service while paying only a fraction of the real cost.

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