Nigeria’s electricity distribution companies (Discos) have recorded a staggering revenue of N509.84bn in the fourth quarter of 2024, despite the occurrence of five grid collapses during the same period. According to the Nigerian Electricity Regulatory Commission (NERC), the revenue generated by the Discos is higher than the N466.69bn collected in the third quarter.
The NERC report revealed that there were three incidents of total collapse and two incidents of partial collapse on the national grid in 2024/Q4. Despite these grid collapses, the Discos were able to generate significant revenue. The report attributed the improved revenue generation to the reduced energy offtake during the quarter compared to 2024/Q3.
The NERC report also highlighted the collection efficiency and performance of the Discos. Eko and Ikeja Discos recorded the highest collection efficiencies in 2024/Q4, with 90% and 82.3%, respectively. Conversely, Jos Disco recorded the lowest collection efficiency at 49.68%. The report noted that eight Discos recorded improvements in collection efficiency between 2024/Q3 and 2024/Q4.
The NERC report emphasized the need for accurate customer enumeration and the installation of end-use customer meters to improve energy accounting and revenue recovery. The commission also recalled its Order on the operationalisation of Tranche A of the Meter Acquisition Fund, which directed Discos to utilize the first tranche of disbursement to procure and install meters for unmetered Band A customers.
The NERC report highlights the challenges faced by Nigeria’s electricity distribution sector, including serial grid collapses and revenue generation. While the Discos have made significant progress in revenue generation, there is a need for sustained efforts to improve energy accounting, revenue recovery, and customer satisfaction.