Nigeria’s Electricity Distribution Companies Generate N291.62 Billion in Q1 2024 Amid Power Crisis

Despite a prolonged power crisis in parts of the country, Nigeria’s electricity distribution companies (Discos) generated a revenue of N291.62 billion in the first quarter of 2024. This revenue was out of the N368.65 billion billed to customers in the first three months of the year, according to a report by the Nigerian Electricity Regulatory Commission (NERC).

The report revealed that the Discos’ revenue collection efficiency stood at 79.11 percent, representing an increase of +5.32 percentage points compared to the 73.79 percent recorded in the fourth quarter of 2023.

The report also showed that the average available generation capacity across all 27 plants in the country during the quarter was 4,249.10 megawatts (MW), representing a loss of 673.16 MW, or a 13.68 percent decrease compared to the 4,922.26 MW recorded in the fourth quarter of 2023. Seventeen out of the 27 grid-connected plants recorded decreased available generation capacities in Q1 2024 compared to Q4 2023.

The prolonged power crisis in Nigeria was attributed to gas shortages, as gas companies refused to supply gas to power-generating companies due to unpaid debts. The PUNCH recalls that this was a period when Nigerians experienced a prolonged power crisis, leading to blackouts in various parts of the country.

In the period under review, the average energy offtake by the DisCos at their trading points was 3,283.87 megawatt-hours (MWh), a decrease of 429.29 MWh compared to the 3,713.16 MWh recorded in Q4 2023. The total energy received by all Discos in 2024/Q1 was 7,171.93 gigawatt-hours (GWh), while the energy billed to end-use customers was 5,769.52 GWh, translating into an overall billing efficiency of 80.45 percent. This represents an increase of two percent relative to the 78.45 percent recorded in the last quarter of last year.

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