According to an analysis of data from the Nigerian Electricity Regulatory Commission (NERC) regarding the commercial performance of Nigerian Discos in the first seven months of 2024, the revenue of electricity distribution companies rose to N8887.86 billion due to an increase in electricity tariff.
The data indicates that out of the N1.14 trillion electricity bills issued by Discos to customers, the companies achieved a 79.7% collection efficiency, amounting to N887.86 billion during the review period.
A breakdown of Discos’ bill collection from January to July 2024 includes N95bn, N97bn, N100.44bn, N142.92bn, N191.65bn, N150.86bn, and N162.14bn, which amounted to N887.86 billion.
Further analysis showed that during the same period in 2023, the companies issued bills totalling N797.18 billion while collecting N604.15 billion.
The surge in revenue collection is attributed to the electricity tariff hike in April from N66 per Kilowatt-hour to N225.
It’s important to note that despite calls for a reversal of the electricity tariff hike, it was initially reduced to 206.68 per kilowatt-hour but later increased to N209 per kilowatt-hour.
Although the electricity tariff hike was implemented for customers receiving at least 20 hours of power supply, Nigerians have expressed concerns about the resulting financial burden.
The increased energy cost has worsened as Discos transitioned more consumers to Band A feeders.
The Minister of Power, Adebayo Adelabu, has maintained that Nigeria’s electricity tariff is one of the most affordable in Africa.