In Q2 2024, Nigerian Electricity Distribution Companies (DisCos) reported N431.16 billion in customer revenues, indicating a 79.31% collection efficiency.
This can be found in the Nigerian Electricity Regulatory Commission’s (NERC) quarterly report for the second quarter of 2024.
This achievement, which is based on a total billing of N543.64 billion, represents a slight improvement over the 79.11% efficiency from the previous quarter by 0.20 percentage points.
Despite continuous difficulties in the power industry, DisCos are better able to recover billed revenues, as seen by the increase in collection efficiency.
DisCos’ Payment to Upstream Market Entities
The study indicates that modifications were made to DisCos’ remittance to the upstream market players in addition to revenue collections.
In Q2 2024, DisCos’ total upstream invoice due was N399.53 billion. This amount comprised N55.77 billion for services rendered by the Market Operator (MO) and N343.76 billion for DRO-adjusted generating costs from Nigerian Bulk Electricity Trading (NBET).
There is still ₦80.88 billion due after the DisCos remitted a total of N318.65 billion (N271.87 billion for NBET and M46.78 billion for the MO).
This translates to a remittance performance of 79.76% in Q2 2024, down from the 96.93% performance noted in Q1 2024, according to the report.
Remittances from Bilateral and Special Clients
Additionally, the research shows that comparable issues were mirrored in the remittance performance of bilateral and special customers.
For services provided in Q2 2024, the four international bilateral clients that the NESI serves paid a total of $9.81 million against an invoiced value of $15.60 million.
Bilateral clients contributed N1.2 billion domestically out of a total of N1.9 billion that was invoiced.
What To Note
Nigeria’s power sector is still facing major obstacles despite multiple government interventions, mostly as a result of underinvestment and ongoing liquidity difficulties.
In an attempt to settle the N1.3 trillion debt owing to gas suppliers within the Nigerian Electricity Supply Industry (NESI), the federal government started paying out N130 billion in May.
To date, gas suppliers have received almost N205 billion in payments to increase the output of energy across the country.
This continuous debt repayment is a component of a larger government plan to increase sector liquidity and, eventually, the nation’s electricity supply.
The ongoing difficulties in controlling remittances, maximising collection rates, and minimizing losses point to more serious problems facing Nigeria’s electricity distribution industry.
