EKEDC, IKEDC record highest revenue as Nigerians pay N466 billion to DisCos in Q3 2024 Nexovant

All electricity distribution companies in Nigeria received a total sum of ₦466.69 billion out of the ₦626.02 billion that was billed to customers in the third quarter of 2024.

Eko and Ikeja Distribution companies received the highest revenues – N 103.11 billion and N 99.73 billion respectively.

According to the latest quarterly report of the Nigerian Electricity Regulatory Commission (NERC), all discos collectively recorded a revenue collection efficiency of 74.55%, 4.76% short of the efficiency rate recorded in Q2 2024 which was 79.31%.

In the second quarter of the year, the joint revenue of all discos was ₦431.16 billion out of ₦543.64 billion billed to customers.

“The total revenue collected by all DisCos in 2024/Q3 was ₦466.69 billion out of the ₦626.02 billion that was billed to customers. This translates to a collection efficiency of 74.55%. In comparison, the total revenue collected by all DisCos in 2024/Q2 was ₦431.16 billion out of the ₦543.64 billion billed to customers which translated to a 79.31% collection efficiency,” the report noted.

In Q3 2023, Eko Disco had a collection efficacy of 84.40% followed by Ikeja Disco with 83.78%. Conversely, Kaduna, Kano and Yola Distribution companies recorded the lowest collection efficiency – less than 50%.

Below is a list of all distribution companies and their revenue collection rates in Q3 2024:

Eko – 84.40

Ikeja – 83.78

Benin – 80.94

Abuja – 78.87

Enugu – 77.23

Ibadan – 76.84

Port Harcourt – 70.76

Jos – 53.29

Yola – 49.31

Kano – 47.03

Kaduna – 46.42

All DisCos – 74.55

Analysing the trend and comparing with past figures, NERC noted that “Based on historical trends, it can be deduced that these decreases are partially driven by the increase in energy offtake by the DisCos between 2024/Q2 and 2024/Q3.

“This is because it has been observed when there is a higher energy offtake, DisCos often allocate the incremental energy to areas where they record higher inefficiencies. The most proven methods to improve energy accounting and revenue recovery are accurate customer enumeration and the installation of end-use customer meters.”

What you should know

The rise in revenue generation reflects improved liquidity in the power sector, as collection efficiency nears 90%.

Following the removal of electricity subsidies for Band A customers, Minister of Power Adebayo Adelabu announced that the government saved approximately N1.4 trillion annually
However, experts say the power sector still needs more investment especially to address infrastructure deficit in the sector.
This need inspired the federal government’s removal of fuel subsidy for band A users with the promise that they would enjoy at least 20 hours of electricity. Although many areas on band A do not enjoy up to 20 hours of supply.

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