The Nigerian Electricity Regulatory Commission (NERC) published its First Quarter 2026 Report in fulfilment of its statutory obligation under Section 56(3) of the Electricity Act 2023. Released on 2 July 2026, the NERC Q1 2026 report offers valuable insights into key developments across the Nigerian Electricity Supply Industry (NESI) during the quarter.
Click the button below to access our concise summary of the report’s key highlights and industry trends.
Generation and commercial performance in Q1 2026
The first quarter of 2026 shows a sector under strain on the generation side. Average available generation capacity fell by 17.45% quarter-on-quarter. The decline was driven largely by lower dry-season hydropower output. Significant outages at plants including Zungeru, Geregu and Rivers also contributed. Two grid disturbances in January 2026 underline the continuing fragility of generation and transmission infrastructure.
Commercial indicators improved unevenly. DisCos improved their energy offtake and remittance performance. That came against worsening ATC&C losses, which rose to 37.44%. The regulatory target for the year is 16.92%. The resulting revenue shortfall of NGN 140.64 billion signals that the retail end of the value chain remains the sector’s weakest link.
The Federal Government absorbed NGN 358.32 billion of the GenCo invoice as tariff subsidy in Q1 2026 alone. That is 52% of the invoice. It follows the freeze of end-user tariffs at July 2024 rates.
Regulatory developments in the quarter
Decentralisation of electricity regulation continued. Gombe State joined the states now regulating their own electricity market. NERC directed Jos Electricity Distribution Plc to incorporate a subsidiary, JED SubCo, to assume intrastate supply and distribution duties within Gombe.
The Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations requires owners of those substations to obtain an IETNO Permit. This brings previously unlicensed private wires infrastructure within NERC’s licensing perimeter for the first time.
The Amended Order on the Reimbursement of Meter Cost mandates automation of meter cost refunds under the Meter Asset Provider scheme. A review found that DisCos owed customers NGN 20.33 billion as at 31 December 2025.
Our full summary covers these developments and their implications for the sector. Click the button below to read the publication.
