In 2024, Nigerian power distribution businesses saw a 33 percent decrease in total revenue, with only N1.699 trillion collected as revenue out of N2.196 trillion billed to clients during that time.
THE NEWS CHRONICLES’ study of the Nigerian Electricity Regulatory Commission’s (NERC) quarterly records revealed that, in the first quarter of 2024, all DisCos collected a total of N291.62 billion, of which N368.65 billion was billed to customers.
N466.69 billion was the total income collected by all DisCos in the second quarter, out of the N626.02 billion billed to clients. The overall revenues for the third and fourth quarters were N466.69 billion and N509.84 billion, respectively, from N626.02 billion and N658.40 billion billed to clients.
Inadequate revenue collection for distributed electricity has been recognized as one of the main issues plaguing Nigeria’s power sector.
The regulator claims that, among other issues facing the industry, low customer metering, dissatisfactory DisCo services, and customers’ unwillingness to pay bills on time are the main causes of poor revenue collection.
The electrical sector’s foreign bilateral customers also accrued a substantial electricity debt of $34.52 million for services provided in 2024.
Among these debtors are Mainstream-NIGELEC from the Niger Republic, Odukpani-CEET from Togo, and Paras SBEE and Transcorp SBEE from the Benin Republic.
The market operator sent these customers an invoice for $14.19 million for services delivered during the first quarter of the year (January–March). Still, the report showed no payment had been made.
Additionally, bilateral customers in the nation did not remit any money towards the ₦1.860 billion cumulative invoice that the MO had sent them for services delivered during that time.
The “special customer,” Ajaokuta Steel Co. Ltd., and the host community failed to pay the ₦1.27 billion (NBET) and ₦0.09 billion (MO) invoices that were received during that time.
The market operator’s international bilateral customers paid $9.81 million in the second quarter (April–June) against the $15.60 million invoice they received for services provided. Resulting in a $5.79 million overdue balance.
The domestic bilateral customers paid ₦1.295 billion, or 65.07 percent of the remittance performance, against the ₦1.991 billion cumulative invoice the MO sent them for services delivered in 2024/Q2. Ajaokuta Steel Co. Ltd., a special client, and the host community failed to pay the ₦0.11 billion (MO) and ₦1.39 billion (NBET) invoices received in 2024/Q2.
Additionally, the international bilateral customers that buy power from the grid-connected GenCos paid $6.49 million in the third quarter, less than the $12.19 million that the MO charged them for the services they received. The domestic bilateral clients paid ₦1.566 billion towards the ₦2.100 billion invoice that the MO sent them for services delivered in 2024/Q3, which translates to a remittance performance of 74.57 percent.
International bilateral clients who buy power from grid-connected GenCos in 2024/Q4 paid $5.21 million towards the $14.05 million MO invoice for services provided during that time.
In the same vein, the domestic bilateral clients paid N1.252 billion for services performed in the fourth quarter, compared to the N1.977 billion that the MO had sent them.
