Despite improvements in bill collection efficiency, Nigerian electricity consumers’ debt reached N385.7 billion in 2023, according to the Nigerian Electricity Regulatory Commission’s (NERC) annual report, as cited by Nairametrics.
The report reveals that bill collection efficiency was at 73.65%, with Distribution Companies (DisCos) collecting N1.07 trillion during the year. However, DisCos issued electricity bills totaling N1.4 trillion, leaving a substantial payment gap despite the progress in collection efforts.
Additionally, the report highlights that in 2023, DisCos were invoiced N858.03 billion for energy supplied by the Nigerian Bulk Electricity Trading (NBET) and for service charges from the Market Operator (MO). Of this amount, DisCos managed to pay N706.73 billion, resulting in a market shortfall of N151.30 billion and an overall remittance performance of 82.37%. This payment deficit underscores the financial difficulties faced by DisCos in fulfilling their obligations.
On a regional scale, remittance performance varied among DisCos. Eko and Yola DisCos led with remittance rates of 105.76% and 105.14% to NBET, while Kaduna DisCo had the lowest, at 17.59%. Similarly, Yola, Eko, and Ikeja DisCos achieved high remittance rates to the Market Operator, with 90.91%, 90.85%, and 90.38%, respectively, while Kaduna DisCo recorded the lowest at 10.75%. These figures reflect significant regional differences in meeting financial obligations within the sector.
Despite numerous government interventions aimed at addressing the sector’s challenges, such as underinvestment and liquidity shortages, the power industry continues to struggle. In May, the federal government announced a N130 billion payment as part of its efforts to settle a N1.3 trillion debt owed to gas suppliers in the Nigerian Electricity Supply Industry (NESI). To date, about N205 billion has been paid to gas suppliers to help boost electricity production across the country. These efforts are part of a broader strategy to stabilize the sector and improve power supply.
