Nigeria’s Electricity Distributors Lose N28.97 Billion to Unpaid Bills in July 2024
Nigeria’s electricity distribution companies have experienced a significant financial setback due to unpaid bills from customers. According to the latest data released by the Nigerian Electricity Regulatory Commission (NERC), the country’s eleven electricity distribution companies (Discos) have lost a staggering N28.97 billion in revenue due to unpaid electricity bills in July 2024.
This figure represents 17.74 percent of the total bills issued to electricity customers in the review period. Despite this substantial loss, the Discos managed to record an electricity bill collection efficiency of 82.26 percent, earning a total of N162.12 billion from the N197.11 billion worth of bills issued in July 2024.
Breaking down the collection figures, Ikeja Disco led the pack with an impressive N33.98 billion, followed closely by Eko Disco with N28.35 billion. Abuja Disco also showed a strong performance, with N25.16 billion in electricity bill collections.
On the other hand, Aba Disco recorded the lowest electricity bill collection in July 2024, with a mere N1.34 billion. The stark contrast in performance across the different Discos reflects the ongoing challenges faced by the electricity sector in Nigeria.
As Nigerians struggle to access reliable and sufficient power supply, the figure of N28.97 billion lost to unpaid electricity bills is a stark reminder of the sector’s liquidity crisis. With an estimated population of over 250 million people, the demand for electricity is high, but the supply remains insufficient, averaging around 5,000 megawatts.
As the Nigerian electricity sector continues to grapple with these challenges, investors and policymakers will need to work together to find innovative solutions to address the unsustainable financial losses and ensure reliable power supply to the public.
