Electricity consumers in Nigeria paid a total of N509.84 billion in the fourth quarter of 2024, despite experiencing five grid collapses during the same period, according to a report by the Nigerian Electricity Regulatory Commission (NERC).
The report revealed that the national grid suffered three total collapses and two partial collapses between October and December 2024. Despite these disruptions, electricity distribution companies (DisCos) recorded a higher revenue compared to the N466.69 billion collected in the third quarter of 2024.
NERC noted that out of the N626.02 billion billed to customers in Q3 2024, DisCos achieved a 77.44% collection efficiency in Q4, marking a +2.89 percentage point increase from the 74.55% recorded in Q3.
According to the report, the partial collapses occurred on October 14 and November 5, 2024, while the total collapses happened on October 19, November 7, and December 11, 2024.
The national power grid, a complex network of electrical transmission lines connecting power stations to end-users, is designed to operate within specific stability parameters — voltage (330kV ± 5.0%) and frequency (50Hz ± 0.5%). Deviations from these thresholds can lead to reduced power quality and, in extreme cases, system-wide blackouts.
The report explained that grid frequency drops when electricity demand exceeds supply, while it rises when supply surpasses demand. The system operator is expected to submit a detailed analysis of the causes of the collapses and propose measures to prevent future occurrences.
Notably, two partial collapses have already been recorded in the first quarter of 2025, further exacerbating power supply challenges.
Eko and Ikeja DisCos maintained the highest collection efficiencies in Q4 2024, at 90% and 82.3%, respectively. Conversely, Jos Disco recorded the lowest collection efficiency at 49.68%.
Eight DisCos improved their collection efficiency between Q3 and Q4, with Yola (+13.93pp) and Kano (+9.88pp) recording the highest gains. However, Jos (-3.61pp) and Abuja (-3.39pp) DisCos posted the most significant declines over the period.
NERC stated that billing and collection efficiencies improved by +1.51pp and +2.89pp, respectively, in Q4, attributing the gains to reduced energy offtake during the quarter. Lower offtake allowed DisCos to focus more on areas with higher billing and collection efficiencies.
NERC highlighted that accurate customer enumeration and widespread metering remain the most effective strategies for improving revenue collection.
The commission recalled that it issued an order in Q2 2024 to operationalise Tranche A of the Meter Acquisition Fund (MAF), which became effective on June 24, 2024. The directive required DisCos to use the first tranche of MAF disbursement to procure and install meters for unmetered Band A customers within their franchise areas.
By the end of December 2024, over 4,000 Band A customers had been metered under the scheme. NERC expects DisCos to leverage the existing Meter Asset Provider (MAP) and National Mass Metering Programme (NMMP) frameworks to expand metering coverage.
The report concluded that improving metering would reduce commercial and collection losses, thereby enhancing liquidity within the Nigerian Electricity Supply Industry (NESI).
