Eko, Ikeja Blaze the Trail as DisCos Collect 77% of Electricity Bills in 3 Months, FG Incurs N472bn
- Electricity revenue collection is improving, with the 11 discos now averaging about 77% efficiency
- Eko DisCo is in the lead with over 90% of total electricity bills collected, while Ikeja Electric follows behind
- Some DisCos have, however, seen a decline in their revenue collection, especially Abuja and Jos DisCos
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Electricity distribution companies (DisCos) in Nigeria billed Nigerians a total of N658.4 billion for electricity consumption in three months.
Out of this sum, the 11 DisCos successfully collected N509.8 billion, translating into a 77.44% revenue collection efficiency for October, November and December 2024.
According to the report from the Nigerian Electricity Regulatory Commission (NERC), this is an improvement over the last quarter, where the DisCos recorded 74.55% efficiency, collecting N466.6 billion out of N626 billion total electricity bills.
Source: Twitter
Eko, Ikeja Electric take the lead
Daily Trust reports that Eko Electric and Ikeja Electric, both in Lagos state, blazed the trail with impressive revenue collection records.
Eko Electric was in the lead with a 90% collection efficiency, and Ikeja Electric was closely behind with 82.63% collection efficiency.
Recall that Transgrid Enerco Limited had acquired a 60% equity stake in Eko Electricity Distribution Company, injecting more funds for the DisCo to expand operations.
In terms of quarter-on-quarter growth, eight DisCos showed improvement in their revenue collection. Yola and Kano DisCos were in the lead, adding 13.93 percent points and 9.88 percent points, respectively.
Jos and Abuja DisCos showed a decline in revenue collection, with -3.61 per cent points and -3.39 per cent points, respectively. Overall, Jos Disco recorded the lowest collection.
FG incurs N471.69 billion in electricity subsidies
The NERC report also reveals that the federal government has incurred additional debts from electricity subsidy obligations, amounting to N471.69 billion in the quarter.
This translates into 56.655 of the total electricity invoice from the generating companies, and is about N7.5 billion higher than the subsidy obligation of N464.1 billion in Q3, 2024, which accounted for 54.71% of the invoice for that quarter.
The report says this subsidy obligation increased due to the federal government’s directive to freeze allowed tariffs paid by customers despite the increase in the cost-reflective tariffs across the quarters.
DisCos achieve 75% revenue collection
Recall that the NERC data also revealed that Discos failed to collect over N60 billion in electricity bills in December 2024.
Source: Getty Images
Only 74.71 per cent of the total amount owed has been collected, leaving a sizable N60.25 billion shortfall.
NERC data noted that the outstanding revenues could significantly affect the industry's stability and ability to provide customers with reliable electricity.
FG spends N200 billion monthly
In related news by Legit.ng, the federal government announced that it spends N200 billion on electricity subsidies for Nigerians monthly.
Special Adviser to the President on Energy, Olu Verheijen, explained that despite the increase in tariffs, Nigeria is yet to achieve a cost-reflective tariff system.
She added that the government is committed to working out a fair pricing plan that will not impose on the poorest Nigerians.
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Source: Legit.ng
