Nigeria’s electricity market recorded losses estimated at N150 billion above regulatory targets in the second quarter of 2026, according to federal officials who say weak billing, collection and remittance continue to undermine the sector. At the Nigeria Energy Exhibition and Conference in Lagos, presidential power adviser Rilwan Babalola said distribution losses remained well above acceptable levels.
Babalola said more than one-third of electricity delivered to some distribution companies was not fully paid for, with aggregate technical, commercial and collection losses varying across operators. Although Nigeria has more than 13,000 megawatts of installed generating capacity, actual daily output remains far lower. He argued that poor planning and operational performance, not capacity alone, explain the shortfall.
Power Minister Joseph Tegbe outlined a phased programme to stabilize the market, expand reliable supply and eventually transform the sector. He said the government was addressing legacy obligations estimated at N3.3 trillion, with N1.23 trillion reportedly paid, and was considering structured settlements and payment assurance mechanisms to prevent further arrears.
Tegbe also said President Bola Tinubu had directed him to resolve obstacles surrounding the long-delayed Mambila hydropower project. The government intends to focus first on major industrial corridors, improve transmission and encourage direct contracting between generators and large customers. Officials additionally cited a long-term aspiration of 270 gigawatts by 2060, a target that would require investment and execution far beyond the sector’s current performance.
