Nigeria’s electricity distribution companies (DisCos) collectively generated N168.7 billion in revenues in August 2024, marking a collection efficiency rate of 80.91%. The Nigeria Electricity Regulatory Commission (NERC) released a report detailing DisCos’ performance, showing that customers were billed a total of N208.5 billion.
Among the top performers, Ikeja DisCo led in revenue with N35.27 billion collected and a billing efficiency of 104.01%, followed by Eko DisCo, which generated N26.37 billion at a billing efficiency of 89.04%. Abuja DisCo collected N26.96 billion with an efficiency of 80.63%
On the lower end, Jos DisCo had the lowest collection efficiency rate at 50.69%, while Yola and Kaduna DisCos recorded rates of 52.06% and 57.16%, respectively. Yola, Jos, and Kaduna DisCos collected revenues of N1.97 billion, N5.23 billion, and N5.2 billion.
Collectively, the 11 DisCos received 2,561.28 GWh of electricity, billing 2,110.53 GWh, resulting in an energy billing efficiency of 82.4%. Ibadan DisCo led with the highest billing efficiency at 90.35%, followed by Eko and Yola DisCos with 89.87% and 88.74%, respectively. Conversely, Enugu, Jos, and Kaduna DisCos recorded the lowest billing efficiencies at 74.66%, 65.35%, and 62.31%, respectively.
While the rise in collection efficiency boosts sector liquidity, longstanding challenges persist. Issues like underinvestment, outdated infrastructure, and funding constraints hinder DisCos’ ability to meet consumer demand. Many companies are struggling to secure funds for network upgrades, metering improvements, and loss reduction
Following subsidy cuts for Band A customers, the Minister of Power, Adebayo Adelabu, highlighted savings of N1.4 trillion annually. However, he emphasized the government’s commitment to eliminating subsidies completely and ensuring tariffs reflect the real cost of electricity.
Under President Tinubu’s administration, the reform agenda includes attracting private investments, improving service quality, and building a competitive, sustainable power market that enhances efficiency and ensures reliable electricity access across the nation.