Nigeria’s electricity distribution companies (DisCos) collected N509.84 billion in revenue during the fourth quarter of 2024, even as the country experienced five national grid collapses within the same period. This was revealed in the latest report by the Nigerian Electricity Regulatory Commission (NERC), highlighting both financial performance and ongoing challenges in the power sector.
According to the report, the revenue generated in Q4 2024 exceeded the N466.69 billion collected in Q3 2024, reflecting an increase in collection efficiency. The collection efficiency for the quarter stood at 77.44%, an improvement of +2.89 percentage points compared to the previous quarter. Despite this revenue growth, electricity consumers endured persistent disruptions, as five of the 12 total grid collapses recorded in 2024 occurred in the last three months of the year.
Frequent Grid Collapses Raise Concerns
The national power grid, a vast network of transmission lines linking power stations to consumers, is designed to operate within specific stability ranges, including a voltage of 330kV ± 5.0% and a frequency of 50Hz ± 0.5%. Any deviation from these ranges can cause severe power instability, leading to partial or total system failures.
NERC confirmed that in Q4 2024, Nigeria recorded three total collapses and two partial collapses of the grid. The partial collapses occurred on October 14 and November 5, 2024, while total collapses happened on October 19, November 7, and December 11, 2024.
The regulator stated that system operators are expected to submit detailed reports on the root causes of these disruptions along with mitigation plans to prevent future occurrences. However, two additional partial collapses have already been recorded in the first quarter of 2025, continuing the trend of instability in the power sector.
Performance of Electricity Distribution Companies
Despite these challenges, several DisCos improved their revenue collection efficiency. According to NERC, Eko DisCo and Ikeja DisCo recorded the highest collection efficiencies in Q4 2024, reaching 90% and 82.3%, respectively. Conversely, Jos DisCo had the lowest efficiency at 49.68%.
A comparison between Q3 and Q4 2024 shows that eight DisCos improved their collection efficiency, with Yola DisCo (+13.93pp) and Kano DisCo (+9.88pp) achieving the largest gains. However, three DisCos recorded declines, with Jos (-3.61pp) and Abuja (-3.39pp) experiencing the most significant drops.
Efforts to Improve Metering and Revenue Collection
NERC emphasized that accurate customer enumeration and increased metering are the most effective solutions for reducing revenue losses and improving energy accounting. The commission highlighted that it had issued an Order on the operationalization of Tranche A of the Meter Acquisition Fund (MAF) in Q2 2024, which took effect on June 24, 2024.
Through the MAF scheme, DisCos have installed over 4,000 meters for Band A customers by the end of 2024. In addition to MAF, DisCos are expected to continue implementing other metering initiatives under the Meter Asset Provider (MAP) and National Mass Metering Program (NMMP) regulations (2021) to enhance end-user metering coverage.
“These initiatives will reduce commercial and collection losses, thereby improving the flow of funds to upstream market participants in the Nigerian electricity supply industry,” NERC stated.
Looking Ahead
While Nigeria’s DisCos continue to generate significant revenue, the persistent issue of grid collapses and power supply instability remains a major concern for consumers. Efforts to enhance metering and improve collection efficiency may help strengthen the sector’s financial viability, but sustainable power sector reforms are needed to ensure reliable electricity supply for Nigerians.
