Nigeria’s electricity distribution companies (Discos) have seen a significant boost in their revenue, collecting a total of N887.86 billion in the first seven months of 2024. This marks a 46.96% increase from the N604.15 billion recorded in the same period in 2023, largely due to the hike in electricity tariffs for Band A customers and improved revenue collection.
Despite consumer dissatisfaction over poor power supply and high costs, the Discos have managed to improve their collection efficiency. Data from the Nigerian Electricity Regulatory Commission (NERC) shows that the Discos billed a total of N1.114 trillion between January and July 2024, achieving a collection efficiency of 79.7%. In contrast, during the same period in 2023, they billed N797.18 billion and collected N604.15 billion.
The revenue growth comes after the Federal Government lifted a two-year tariff freeze in April, increasing the cost of electricity for Band A customers—those who consistently receive at least 20 hours of power daily—from N68 to N225 per kilowatt-hour (kWh). Following public outcry, NERC later adjusted the rate to N206.8/kWh, an 8.1% reduction. However, many Nigerians are still feeling the pressure of higher energy bills, which have become a significant burden amid rising costs of living.
Power Minister Adebayo Adelabu recently reassured citizens that efforts to boost power generation and distribution could lead to a reduction in electricity prices in the coming months. However, public skepticism remains, as many communities continue to protest against being categorized under the highest-paying tariff, arguing that it exacerbates economic hardship.
The monthly revenue breakdown reveals that N95 billion was generated in January from N130.92 billion billed, while February saw N97 billion collected from N113 billion in billing. Revenue continued to rise, with N100.44 billion collected in March and N142.92 billion in April. By May, the Discos collected N139.23 billion, which increased to N150.86 billion in June and N162.14 billion in July.
The revenue growth trajectory suggests that by the end of 2024, the Discos are on track to surpass their total earnings for the years 2021, 2022, and 2023.
This surge in revenue reflects the impact of higher tariffs and improved billing systems, although challenges remain regarding the adequacy and reliability of power supply across the country.
