- Nigeria’s Electricity Distribution Companies lost N28.97 billion in July 2024 due to unpaid bills, representing 17.74% of total electricity bills issued.
- Despite collecting N162.12 billion from N197.11 billion in bills, many Nigerians face inadequate power supply, with an average generation of only 5,000 megawatts for over 250 million people.
In July 2024, Nigeria’s eleven Electricity Distribution Companies (Discos) reported a staggering loss of N28.97 billion due to unpaid electricity bills from customers. The Nigerian Electricity Regulatory Commission (NERC) released this information in its monthly Commercial Performance Factsheet.
The unpaid amount represents 17.74% of the electricity bills issued during that period, highlighting ongoing challenges in bill collection and payment compliance among consumers. Despite this significant shortfall, the Discos achieved % overall bill collection efficiency of 82.26%. They earned N162.12 billion out of N197.11 billion in bills issued for July 2024.
The NERC data also revealed that Ikeja Electric, Eko Electricity Distribution Company, and Abuja Disco were the top collectors during this period, amassing N33.98 billion, N28.35 billion, and N25.16 billion, respectively. In contrast, Aba Disco reported the lowest electricity bill collection at just N1.34 billion, underscoring disparities in performance among the various Discos.
This financial strain on the Discos comes at a time when many Nigerians continue to struggle with an inadequate power supply. The country generates only 5,000 megawatts of electricity for a population exceeding 250 million, leading to widespread frustrations over power availability and reliability.
The significant amount of unpaid electricity bills poses serious concerns for the financial viability of the Discos. With many consumers failing to pay for their electricity, these companies may face difficulties maintaining and upgrading their infrastructure, which is crucial for improving service delivery. The persistent issues of low electricity generation capacity and high levels of unpaid bills could hinder Nigeria’s efforts to enhance its power supply and meet the demands of its growing population.
Addressing the challenge of unpaid bills will be vital as the government and regulatory bodies work towards solutions, including policy reforms and improved electricity access. Without adequate measures to enhance collection efficiency and ensure that consumers fulfil their payment obligations, the Discos may struggle to provide the reliable electricity supply essential for economic growth and development in Nigeria.