Data from the Nigerian Electricity Regulatory Commission (NERC) has shown that Nigeria’s electricity distribution companies jointly amassed a total of N3.95 trillion in revenue between 2019 and the first quarter of 2024.
Further analysis revealed an increase in revenue generation over the past five years.
The breakdown showed that Discos made N482.6 billion in 2019, N526.8 billion in 2020, N761.2 billion in 2021, N828.1 billion in 2022, N1.07 billion in 2023, and N291.6 billion in the first quarter of 2024.
Analysts within the Nigerian Electricity Supply Industry (NESI) ascribed the upward trajectory in revenue to several factors, such as constant tariff adjustments leading to cost-reflective pricing, which allowed the Discos to align revenue with the cost of providing electricity.
Furthermore, the National Mass Metering Programme (NMMP) has significantly increased the number of metered customers, thereby reducing estimated billing and enhancing the accuracy of revenue collection, a promising sign for the future of the industry.
The NMMP also assisted in reducing Aggregate Technical, Commercial, and Collection losses that once blustered the sector.
Despite the revenue growth, the Discos struggle with challenges such as high unpaid bills, theft, infrastructure deficits, and energy losses.