Electricity Distribution Companies in Nigeria Rake in N887.86 Billion Amid Tariff Hike
In the first seven months of 2024, electricity distribution companies in Nigeria have generated a staggering N887.86 billion in revenue. This significant increase is largely attributed to the hike in electricity tariff, which came into effect in April, from N66 per kilowatt-hour to N225.
According to an analysis of Nigerian Electricity Regulatory Commission data on Discos’ commercial performance for the seven months of 2024, the companies have recorded a remarkable 79.7 percent collection efficiency. This translates to an impressive N887.86 billion in revenue, marking a significant surge from the N604.15 billion collected during the same period in 2023.
The data reveals that Discos issued bills totaling N1.14 trillion to customers, with a breakdown of the bill collection including N95bn, N97bn, N100.44bn, N142.92bn, N191.65bn, N150.86bn, and N162.14bn. Notably, the companies had issued bills totaling N797.18 billion in 2023, but collected only N604.15 billion.
The hike in electricity tariff was introduced in April, with a call for its reversal amid criticisms from Nigerians. Despite this, the tariff was reviewed downward to 206.68 per kilowatt-hour before being upwardly reviewed to N209 per kilowatt-hour. The move has added to the energy cost burden faced by Nigerians, particularly those who have been migrated to Band A feeders.
However, Nigeria’s Minister of Power, Adebayo Adelabu, has assured that the country’s electricity tariff is among the cheapest within African countries. With the revenue generated by electricity distribution companies, the Nigerian government is likely to prioritize investments in the power sector to ensure a more sustainable and reliable supply of electricity to the nation’s households and industries.
