- Eko Electricity Distribution Company’s (EKEDC) acting MD, Rekhiat Momoh, revealed that state agencies, the military, and law enforcement owe N144 billion.
- Despite this debt, EKEDC has reduced its AtC&C losses ratio from 35% to 15.1% in 2024, improving operational efficiency.
Rekhiat Momoh, the acting Managing Director of Eko Electricity Distribution Company (EKEDC), has revealed that Nigeria’s various state government agencies, the military, and law enforcement currently owe the company N144 billion. Momoh disclosed this financial shortfall during a visit from the House of Representatives Committee on Privatization and Commercialization to EKEDC’s Lagos office on Tuesday.
Momoh highlighted that the non-payment issue is widespread, with twenty out of Nigeria’s thirty-six state governments failing to settle their electricity bills. This situation affects state secretariats and government houses and impacts critical sectors such as the police and military. Momoh expressed that these unpaid bills create significant financial challenges for EKEDC and complicate efforts to collaborate with the federal government’s distribution sector recovery program.
Despite these challenges, EKEDC has achieved notable improvements in its performance metrics. The company has reduced its Aggregate Technical, Commercial, and Collection (AtC&C) losses ratio from 35% in 2023 to 15.1% in 2024. This reduction is a significant accomplishment, reflecting EKEDC’s efforts to enhance operational efficiency and recover more of the revenue owed.
The broader context of these financial difficulties includes discussions within the Association of Nigerian Electricity Distributors (ANED), where concerns about unpaid taxes by electricity companies were also raised. Sunday Oduntan, the Executive Director of Research and Advocacy at ANED, indicated that the power distribution companies might face actions such as having their facilities sealed if the issues related to unpaid taxes are not addressed.
The financial strain caused by unpaid electricity bills from state agencies and security forces poses a significant challenge for EKEDC and the Nigerian power distribution sector. However, despite these obstacles, EKEDC’s recent improvements in reducing its loss ratio highlight the company’s ongoing efforts to enhance its financial and operational stability.