Nigerian electricity consumers had N385.7 billion in debt as of 2023, despite a steady improvement in bill collection efficiency.
According to THE MATRIX, this was disclosed in the Nigerian Electricity Regulatory Commission’s (NERC) annual report and finances.
The study states that the distribution firms (DisCos) received N1.07 trillion during the same time, with an efficiency rate of 73.65% for bill collection.
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The distribution businesses, with a 94% offtake performance capability from the national grid, issued N1.4 trillion in energy bills, but only collected N1.07 trillion, as the study also reveals.
This suggests that even with increases in the effectiveness of bill collection, there is still a sizable payment deficit.
Furthermore, the report indicates that in 2023, Distribution Companies (DisCos) received a total invoice of N858.033 billion for energy supplied by the Nigerian Bulk Electricity Trading (NBET) and for service charges by the Market Operator (MO).
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Out of this, DisCos paid N706.73 billion, leaving a market shortfall of N151.30 billion. This resulted in an overall remittance performance of 82.37%, illustrating the ongoing challenges DisCos faces in meeting their financial obligations.
Despite efforts to improve payment collection, the remaining deficit highlights the financial strain on the electricity sector, which continues to impact its stability and sustainability.
On a regional level, electricity distribution companies in Nigeria showed varying remittance performances in 2023. Eko and Yola Distribution Companies (DisCos) led the pack with exceptional remittance rates to the Nigerian Bulk Electricity Trading (NBET), achieving 105.76% and 105.14%, respectively.
In contrast, Kaduna DisCo recorded the lowest remittance to NBET, at a mere 17.59%. When considering remittances to the Market Operator (MO), Yola, Eko, and Ikeja DisCos stood out, remitting 90.91%, 90.85%, and 90.38% respectively.
However, Kaduna again lagged, with the lowest MO remittance performance at just 10.75%. These disparities reflect significant regional differences in the financial obligations met by the various DisCos across the country.
