Electricity Distribution Companies (DisCos) in Nigeria recorded a total revenue of N515.68 billion in the fourth quarter of 2024, falling short of their projected earnings by N152 billion, according to data from the Nigerian Electricity Regulatory Commission (NERC).
The revenue figures were compiled from 12 DisCos, including Benin, Kaduna, Kano, Yola, Jos, Abuja, Ibadan, Ikeja, Eko, Port Harcourt, Enugu, and Aba Power Electric.
NERC’s data showed that in October 2024, the listed DisCos generated a cumulative revenue of N163.07 billion, significantly below the forecasted N213.62 billion. In November, revenue improved to N174.65 billion against a projection of N216.72 billion, while in December, the companies earned N177.96 billion.
Despite the incremental growth in monthly revenue, the total income for Q4 remained below expectations, highlighting persistent revenue collection challenges in the sector.
In an attempt to improve revenue, the government had reclassified 15 per cent of electricity consumers into Band ‘A,’ where they now pay N209.50 per kilowatt-hour, up from about N63/kWh previously.
Earlier in 2024, before the Band ‘A’ policy took effect, DisCos recorded N291.62 billion in revenue in Q1, out of the N368.65 billion billed to customers. This reflected a collection efficiency of 79.11 percent, marking a 5.32 per cent improvement compared to 73.79 per cent in Q4 2023.
In Q2, revenue climbed to N431.16 billion, with a collection efficiency of 79.31 percent. This upward trend continued into Q3, when DisCos generated N466.69 billion, an 8 per cent increase from the previous quarter. However, despite the revenue increase, the collection efficiency dropped to 74.55 percent due to a total billing of N626.02 billion, leaving a shortfall of N159.3 billion.
NERC’s report also highlighted that Aggregate Technical, Commercial, and Collection (ATC&C) Loss stood at 36.36 per cent in Q1 2024, comprising technical and commercial losses of 19.55 per cent and collection losses of 20.83 per cent. The persistent losses and revenue collection inefficiencies continue to pose significant financial challenges for DisCos, affecting the overall stability of Nigeria’s power sector.
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