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Nigerians expended a total of N509.84 billion on electricity in the last quarter of 2024, marking a slight increase from N466.69 billion spent in the preceding quarter, according to data released by the Nigerian Electricity Regulatory Commission (NERC).
Despite this uptick in revenue, distribution companies still faced a combined loss of N139.08 billion due to inefficiencies in billing and revenue collection.
The fourth quarter 2024 report from NERC showed that the sector billed customers N658.40 billion, which is an increase from the N626.02 billion billed in the third quarter. Amid the ongoing domestic power crisis, the report indicated that the Benin Republic and Togo owed Nigeria a total of $8.84 million for electricity supplied during the last quarter.
The report also stated that six international bilateral customers served by Nigerian power generation companies (GenCos) collectively paid $5.21 million of the $14.05 million invoiced for Q4 2024, resulting in a collection performance of 37.08 per cent.
The amount gathered by DisCos rose from N466.69 billion in the third quarter to N509.84 billion in the fourth quarter, increasing the national collection efficiency to 77.44 per cent, up from 74.55 per cent in the earlier quarter. Eko DisCo topped the performance chart with a 90 per cent collection efficiency, having collected N96.58 billion out of N107.31 billion billed. Ikeja DisCo followed with 82.63 per cent efficiency, collecting N101.92 billion from N123.35 billion billed. Benin, Enugu, and Port Harcourt DisCos also achieved over 75 per cent efficiency, showing robust collection performance.
However, numerous DisCos struggled with revenue recovery. Jos DisCo had the lowest collection efficiency at 49.68 per cent, raising only N14.25 billion out of N28.67 billion billed. Kaduna and Kano DisCos also underperformed, with efficiency levels of 55.52 per cent and 56.91 per cent, respectively. Despite these difficulties, Yola DisCo improved its collection efficiency from 49.31 per cent in Q3 to 63.24 per cent in Q4.
NERC reported that the aggregate technical, commercial, and collection (ATC&C) loss for all DisCos was 35.22 per cent during this time, amounting to a revenue loss of N139.08 billion. Although this represents an improvement from the 39.1 per cent loss recorded in the third quarter, it remains significantly above the Multi-Year Tariff Order (MYTO) target of 24.78 per cent. Kaduna DisCo had the poorest performance in this regard, with an ATC&C loss of 60.65 per cent against a target of 25 per cent.
Despite efforts from the Federal Government and NERC to fund metering, the report revealed that as of December 31, 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 compared to Q3. Ikeja, Ibadan, and Benin DisCos led in the number of installations, contributing 28.81 per cent, 20 per cent, and 12.62 per cent of total installations, respectively. The majority of installed meters (96.56 per cent) were under the Meter Asset Provider (MAP) framework, with a smaller portion installed through the Meter Acquisition Fund (MAF), Vendor Financed, and DisCo Financed frameworks. Ikeja DisCo led MAP installations with 53,431 meters, followed by Ibadan with 37,089 and Benin with 23,397.
NERC noted that domestic bilateral customers made a cumulative payment of N1.25 million against the invoiced N1.98 million for services provided in the quarter, reflecting a remittance performance of 63.36 per cent. Some customers, including Paras-CEET, Paras-SBEE, and Transcorp-SBEE, made partial payments towards outstanding debts from previous quarters, totaling $2.98 million.
