Niger, Benin Republic, and Togo owe Nigeria $14.2 million in electricity debts as of Q1 2024, according to the Nigerian Electricity Regulatory Commission (NERC).
Data from NERC indicates that Nigeria’s electricity distribution companies collectively generated N3.95 trillion in revenue from 2019 through the first quarter of 2024.
A closer look at the figures reveals a steady increase in revenue over the past five years. The breakdown shows that distribution companies (Discos) earned N482.6 billion in 2019, N526.8 billion in 2020, N761.2 billion in 2021, N828.1 billion in 2022, N1.07 trillion in 2023, and N291.6 billion in the first quarter of 2024.
Analysts in the Nigerian Electricity Supply Industry (NESI) attribute this revenue growth to several factors, including regular tariff adjustments that have led to cost-reflective pricing, enabling Discos to better align their revenue with the costs of electricity provision.
In addition, Nigeria’s electricity generation saw a decline of 901 GWh in Q1 2024, as reported by NERC. The National Mass Metering Programme (NMMP) has played a crucial role in increasing the number of metered customers, which has helped reduce estimated billing and improve the accuracy of revenue collection—an encouraging development for the industry’s future.
The NMMP has also contributed to lowering Aggregate Technical, Commercial, and Collection losses that have historically plagued the sector.
Despite the revenue increases, Discos continue to face significant challenges, including high levels of unpaid bills, theft, infrastructure shortcomings, and energy losses.
