Ikeja Disco has led the Nigerian electricity distribution sector in revenue and efficiency for the first quarter of 2024, despite sector-wide challenges. None of the four international bilateral electric power customers serviced by market operators made any payment against the $14.19 million invoice issued for services rendered in the first quarter of 2024, according to the Nigerian Electricity Regulatory Commission (NERC) report.
The international customers, including PARAS-SBEE, Transcorp-Société Béninoise d’Energie Electrique (SBEE), Mainstream-Nigerien Electricity Society (NIGELEC), and Odukpani-Compagnie Energie Electriques du Togo (CEET), owe $3.15 million, $4.46 million, $1.21 million, and $5.36 million respectively.
Additionally, Ajaokuta Steel Co. Ltd and the host community (special customers) did not make any payments towards the ₦1.27 billion (NBET) and ₦0.09 billion (MO) invoices received in 2024/Q1. This continues a trend of non-payment by these customers, with the Commission emphasizing the need for intervention from relevant Federal Government authorities. Persistent non-payment could lead to total disconnection from the grid.
Similarly, none of the bilateral customers within the country made any payment towards the cumulative invoice of ₦1.860 billion issued by the Market Operator for services rendered in the same period.
On a positive note, the total revenue collected by all Distribution Companies (Discos) during this period was ₦291.62 billion out of ₦368.65 billion billed to customers. The total energy received by all Discos was 7,171.93 GWh, while the energy billed to end-use customers was 5,769.52 GWh, resulting in an overall billing efficiency of 80.45 percent.
Ikeja Disco led the revenue collection with ₦57.88 billion, followed by Eko Disco at ₦48.74 billion. Yola Disco collected the least revenue at ₦5.46 billion. Other Discos and their revenue collections include Abuja Disco at ₦48.60 billion, Ibadan Disco at ₦30.35 billion, Benin Disco at ₦22.46 billion, Enugu Disco at ₦21.24 billion, Port Harcourt Disco at ₦20.39 billion, Kano Disco at ₦13.62 billion, Jos Disco at ₦13.29 billion, and Kaduna Disco at ₦9.60 billion.
The aggregate Technical, Commercial, and Collection (ATC&C) loss recorded across all 11 Discos was 36.36 percent, which includes 19.55 percent in technical and commercial losses and 20.83 percent in collection losses. This is 8.86 percentage points higher than the allowed efficient loss target of 27.50 percent.
However, Ikeja Disco excelled with an actual ATC&C loss of 15.81 percent, outperforming its target of 18.73 percent. This achievement highlights Ikeja Discos ability to meet 100% of its revenue requirements for the period, covering all market obligations and operational costs effectively.
The report notes that all Discos recorded decreases in ATC&C losses compared to the previous quarter, with notable improvements from Kaduna (-12.97 percentage points) and Benin (-9.35 percentage points). Despite some Discos not meeting their ATC&C targets, the Commission is working with them to address these issues through customer enumeration and increased revenue assurance.