Electricity distribution companies across Nigeria collected N168.7 billion in revenues in August 2024, achieving a collection efficiency rate of 80.91%.
The Nigeria Electricity Regulatory Commission (NERC) released a fact sheet detailing the performance of DisCos for the month, showing that customers were billed a total of N208.5 billion.
According to the report, Ikeja DisCo recorded the highest revenue for the month, collecting N35.27 billion, with a billing efficiency rate of 104.01%.
Eko DisCo followed with a billing efficiency of 89.04%, generating N26.37 billion in revenue. Abuja DisCo ranked third, collecting N26.96 billion with a billing efficiency rate of 80.63%.
On the lower end, Jos DisCo reported the lowest collection efficiency among the DisCos, with a rate of 50.69%. Yola and Kaduna DisCos followed closely, recording collection efficiency rates of 52.06% and 57.16%, respectively. In terms of revenue, Yola, Jos, and Kaduna DisCos collected N1.97 billion, N5.23 billion, and N5.2 billion, respectively.
Energy Billing Efficiency
The report also highlighted the energy billing efficiency of the 11 electricity distribution companies. Collectively, they received 2,561.28 GWh of electricity and billed 2,110.53 GWh, reflecting an energy billing efficiency of 82.4%.
Ibadan DisCo led with the highest billing efficiency rate, achieving 90.35% by billing 153 GWh out of 160 GWh received. Eko and Yola DisCos followed with billing efficiency rates of 89.87% and 88.74%, respectively.
Conversely, Enugu, Jos, and Kaduna DisCos recorded the lowest energy billing efficiency rates at 74.66%, 65.35%, and 62.31%, respectively.
What You Should Know
The increase in revenue collection to N168.7 billion signals improved liquidity in the power sector, with collection efficiency nearing 90%. This improvement reduces the DisCos’ dependence on federal government bailouts and subsidies.
- Following the removal of electricity subsidies for Band A customers, Minister of Power Adebayo Adelabu announced that the government saved approximately N1.4 trillion annually.
- However, the power sector still faces significant challenges. Underinvestment, outdated infrastructure, and liquidity constraints continue to hinder the ability of DisCos to meet growing consumer demand efficiently. Many DisCos are struggling with inadequate funding to upgrade networks, improve metering systems, and reduce power losses. These issues have made it difficult for the sector to achieve the reliability and service quality expected by consumers.
- The reform agenda of the current administration under President Tinubu aims to address these lingering challenges. Minister Adelabu has reiterated that the government is committed to phasing out subsidies entirely and ensuring tariffs reflect the actual cost of electricity generation and distribution.
The reform plan also includes strategies to attract private investment into the sector to boost capacity and service delivery. The ultimate goal is to build a sustainable electricity market that encourages competition, promotes efficiency, and ensures uninterrupted power supply to consumers across the country.
SOURCE: NAIRAMETRICS
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