Nigeria’s electricity distribution companies collectively generated approximately N3.95 trillion in revenue from 2019 to the first quarter of 2024, according to data from the Nigerian Electricity Regulatory Commission (NERC) released by the National Bureau of Statistics (NBS).
The analysis revealed a steady increase in revenue over the past five years.
The breakdown shows that in 2019, the power distributors generated N482.6 billion, which rose to N526.8 billion in 2020, N761.2 billion in 2021, N828.1 billion in 2022, N1.07 trillion in 2023, and N291.6 billion in the first quarter of 2024.
Analysts in the Nigerian Electricity Supply Industry (NESI) attribute this consistent revenue growth to several factors, including ongoing tariff adjustments aimed at achieving cost-reflective pricing.
These adjustments have enabled the distribution companies (Discos) to better align their revenue with the cost of electricity supply.
Furthermore, the National Mass Metering Programme (NMMP) has significantly increased the number of metered customers, reducing the reliance on estimated billing and improving the accuracy of revenue collection.
The NMMP has also helped to decrease Aggregate Technical, Commercial, and Collection (ATC&C) losses, which have historically plagued the sector.
Despite this growth in revenue, the Discos continue to face significant challenges, such as high levels of unpaid bills, electricity theft, infrastructure deficits, and ongoing energy losses.