Despite ongoing complaints about low power generation, Nigeria’s electricity distribution companies (Discos) increased their monthly revenue from N95 billion in January to N100 billion in March 2024.
Data released by the Nigerian Electricity Regulatory Commission (NERC) indicated that revenue for February was N97 billion. This increase in revenue occurred during a period of significant power supply shortages caused by gas supply issues.
In January, Discos received 2,577 gigawatt-hours (GWh) of power, billing 2,072 GWh, achieving an 80% billing efficiency. The total billing amounted to N130.9 billion, with N95 billion collected, representing a 72% collection efficiency. The allowed average tariff rate was N59.89k per kilowatt-hour (KWh), while the actual average collection was N36.97k/KWh.
In February, the total energy received dropped to 2,149 GWh, with 1,759 GWh billed, resulting in N97 billion collected from N113 billion in billings. In March, 1,975 GWh were billed from 2,468 GWh received, generating N100 billion from N126.5 billion in billings. The increase in revenue is partly attributed to a rise in tariffs, with the allowed average tariff for March at N62.73k/KWh and the actual average collection at N40.69k/KWh.
Among the Discos, Ikeja had the highest revenue in March with N20 billion, followed by Eko and Abuja Discos, each generating N16.7 billion. Ibadan Disco collected N10 billion, while Benin and Enugu Discos brought in N7.5 billion and N6.9 billion, respectively. Newly inaugurated Geometric Power (Aba Power) generated N1.1 billion, and Yola Disco earned N1.5 billion.
Overall, the Discos generated N292 billion in the first quarter of 2024. This revenue increase occurred despite a significant drop in power generation due to gas shortages, which led to nationwide blackouts in January. Power generation, which had been around 4,000 MW, fell below 2,500 MW at times, affecting the distribution companies’ ability to supply electricity.
The Discos apologized to their customers, explaining, “We cannot give what we don’t have.” Despite unresolved gas shortages, NERC removed electricity subsidies in Band A areas, raising the tariff to N206 per kilowatt-hour.
In response to protests by labor unions against the tariff hike, Minister of Power Adebayo Adelabu defended the policy, stating it would provide the liquidity needed to transform the Nigerian power sector and attract local and foreign investors.
