The electricity distribution companies in Nigeria recorded a 33 percent short fall in their total revenue in the year 2024, as only N1.699 trillion was collected as revenue out of N2.196 trillion billed to customers in the period.
BusinessDay analysis of the quarterly reports as published by the Nigerian Electricity Regulatory Commission (NERC) showed that the total revenue collected by all DisCos in the first quarter of 2024 was N291.62 billion out of N368.65 billion billed to customers.
In the second quarter, the total revenue collected by all DisCos was N466.69 billion out of N626.02 billion billed to
customers, while in the third and fourth quarter the total revenues were N466.69 billion and N509.84 billion out of N626.02 billion and N658.40 billion billed to customers.
Poor revenue collection for electricity distributed has been identified as a major challenge bedeviling Nigeria’s power sector.
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The poor revenue collection according to the regulator is driven by a lack of willingness of customers to pay bills when due, unsatisfactory DisCos’ services as well as inadequate customer metering among other challenges in the sector.
Also, the international bilateral customers in the electricity sector, accumulated a significant electricity debt of $34.52 million for services rendered to them in the year 2024.
These debtors include Paras SBEE and Transcorp SBEE from Benin Republic, Odukpani-CEET from Togo, and Mainstream- NIGELEC from Niger Republic.
The report indicated that no payment was made against the total $14.19 million invoice issued to these customers by the market operator for services rendered in the first quarter of the year (Jan- March).
Also, no remittances were made by bilateral customers within the country against the cumulative invoice of ₦1.860 billion issued to them by the MO for services rendered in the period.
Ajaokuta Steel Co. Ltd and the host community, referred to as ‘special customer’ did not make any payment towards the ₦1.27 billion (NBET) and ₦0.09 billion (MO) invoices received in the period.
In the second quarter (April – June) the international bilateral customers serviced by the market operator made a cumulative payment of $9.81 million against the $15.60 million invoice issued to them for services rendered in the period. Creating an outstanding balance of $5.79 million.
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The domestic bilateral customers made a payment of ₦1.295 billion million against the cumulative invoice of ₦1.991 billion issued to them by the MO for services rendered in 2024/Q2 translating to 65.07 percent remittance performance. Special customer, Ajaokuta Steel Co. Ltd and the host community did not make any payment towards the ₦1.39 billion (NBET) and ₦0.11 billion (MO) invoices received in 2024/Q2.
Also, in the third quarter, the international bilateral customers purchasing power from the grid-connected GenCos made a cumulative payment of $6.49 million against the $12.19 million invoice issued to them by the MO for services rendered. The domestic bilateral customers made a cumulative payment of ₦1.566 billion against the invoice of ₦2.100 billion issued to them by the MO for services rendered in 2024/Q3 translating to 74.57 percent remittance performance
In 2024/Q4, the international bilateral customers purchasing power from the grid connected GenCos made a cumulative payment of $5.21 million against the $14.05 million invoice issued to them by the MO for services rendered in the period.
Similarly, the domestic bilateral
customers made a cumulative payment of N1.252 billion against the N1.977 billion invoice issued to them by the MO for services rendered in the fourth quarter.