Nigerians Spend Over N509 Billion On Electricity In Fourth Quarter Of 2024.
Nigerians spent a total of N509.84 billion on electricity in the final quarter of 2024, reflecting a modest increase from the N466.69 billion recorded in the third quarter, according to the latest report from the Nigerian Electricity Regulatory Commission (NERC).
Despite the rise in revenue, power distribution companies (DisCos) still suffered a combined loss of N139.08 billion due to inefficiencies in billing and revenue collection. The NERC report stated that the electricity sector billed customers N658.40 billion in Q4, up from N626.02 billion in the previous quarter.
The report also highlighted outstanding debts from international customers, revealing that the Benin Republic and Togo owed Nigeria a total of $8.84 million for electricity supplied during the quarter. Out of the $14.05 million invoiced to six international bilateral customers, only $5.21 million was paid, resulting in a payment performance of 37.08 per cent.
Domestically, revenue collection by DisCos improved, with the total amount collected rising from N466.69 billion in Q3 to N509.84 billion in Q4. This pushed the national collection efficiency to 77.44 per cent, up from 74.55 per cent in the previous quarter.
Eko DisCo emerged as the best-performing distributor with a collection efficiency of 90 per cent, having recovered N96.58 billion out of N107.31 billion billed. Ikeja DisCo followed with 82.63 per cent, collecting N101.92 billion from N123.35 billion billed. Benin, Enugu, and Port Harcourt DisCos also performed strongly, each achieving over 75 per cent efficiency.
However, some DisCos struggled with revenue recovery. Jos DisCo recorded the lowest collection efficiency at 49.68 per cent, collecting just N14.25 billion out of N28.67 billion billed. Kaduna and Kano DisCos also performed below expectations, with efficiency rates of 55.52 per cent and 56.91 per cent, respectively. On a positive note, Yola DisCo improved its collection efficiency from 49.31 per cent in Q3 to 63.24 per cent in Q4.
The report further noted that aggregate technical, commercial, and collection (ATC&C) losses for all DisCos stood at 35.22 per cent, translating to a revenue loss of N139.08 billion. While this was an improvement from the 39.1 per cent loss recorded in Q3, it remained significantly higher than the Multi-Year Tariff Order (MYTO) target of 24.78 per cent. Kaduna DisCo recorded the highest ATC&C loss at 60.65 per cent, well above its target of 25 per cent.
Regarding metering, the report revealed that as of 31 December 2024, only 6.2 million customers (46.57 per cent) out of 13.5 million registered consumers had been metered. During the quarter, a total of 185,439 meters were installed, representing a slight increase of 0.19 per cent from Q3.
Ikeja, Ibadan, and Benin DisCos led in meter installations, accounting for 28.81 per cent, 20 per cent, and 12.62 per cent of total installations, respectively. The majority (96.56 per cent) of these meters were installed under the Meter Asset Provider (MAP) framework, while others were provided through the Meter Acquisition Fund (MAF), Vendor Financed, and DisCo Financed frameworks.
In addition, NERC reported that domestic bilateral customers made a cumulative payment of N1.25 million against the N1.98 million invoiced for services rendered in the quarter, translating to a remittance performance of 63.36 per cent. Some international customers, including Paras-CEET, Paras-SBEE, and Transcorp-SBEE, made partial payments towards outstanding debts from previous quarters, amounting to $2.98 million.
Despite improvements in revenue collection, the electricity sector continues to face challenges related to metering, revenue losses, and inefficiencies in billing.
