- Discos monthly revenue rose from N95bn in January to N100bn in March 2024.
- Discos achieved 80% billing efficiency in January, collecting N95bn.
- Higher tariffs, up to N206/KWh, drove revenue growth amidst protests.
Amid low power generation complaints, Nigeria’s electricity distribution companies (Discos) raised monthly revenue from N95 billion in January to N100 billion in March 2024, according to the Nigerian Electricity Regulatory Commission (NERC).
Discos generated N97 billion in February despite a significant power supply drop due to gas shortages. NERC data showed Discos received 2,577 gigawatt-hours (GWh) of power and billed 2,072 GWh, achieving 80% billing efficiency in January.
Total billing reached N130.9 billion, with Discos collecting N95 billion, representing 72% efficiency. The allowed average tariff stood at N59.89 per kilowatt-hour (KWh), while the average collection was N36.97/KWh.
Discos’s energy receipts in February dropped to 2,149 GWh, with 1,759 GWh billed. Despite this, Discos collected N97 billion from N113 billion billed. In March, Discos received 2,468 GWh and billed 1,975 GWh, resulting in collections of N100 billion from N126.5 billion billed.
The revenue rise stemmed from higher tariffs, with NERC noting the allowed average tariff for March was N62.73/KWh, while the average collection was N40.69/KWh. Ikeja Disco led revenue with N20 billion, followed by Eko and Abuja Discos at N16.7 billion each.
Ibadan Disco reported N10 billion, while Benin and Enugu Discos collected N7.5 billion and N6.9 billion, respectively. Geometric Power, or Aba Power, generated N1.1 billion, and Yola Disco earned N1.5 billion. In total, Discos generated N292 billion in the first quarter of 2024.
Despite challenges, including nationwide blackouts in January due to unpaid gas debts, power generation dropped from around 4,000MW to below 2,500MW. Discos apologised, stating, “We cannot give what we don’t have.” Although gas shortages persist, NERC removed electricity subsidies for Band A areas, raising the tariff to N206 per kilowatt-hour.
Labour unions protested the hike, calling for a reversal. Minister of Power Adebayo Adelabu defended the increase, saying it would bring liquidity and attract investment to the power sector. Adelabu stated the policy has already transformed Nigeria’s power sector.