The latest quarterly report from the Nigerian Electricity Regulatory Commission (NERC) indicates that the overall revenue collection efficiency for all distribution companies was 74.55%, which is 4.76% lower than the 79.31% efficiency recorded in the second quarter of 2024.
In the second quarter, the total revenue collected by all distribution companies was ₦431.16 billion out of ₦543.64 billion billed to customers.
The report states, "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 ₦543.64 billion billed to customers, which translated to a 79.31% collection efficiency."
In Q3 2023, Eko Disco achieved a collection efficiency of 84.40%, followed closely by Ikeja Disco at 83.78%. In contrast, Kaduna, Kano, and Yola Distribution companies reported the lowest collection efficiencies, falling below 50%.
The following is a summary of the revenue collection rates for all distribution companies 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. Overall, all DisCos achieved a collection efficiency of 74.55.
NERC's analysis of the trends, in comparison to previous figures, suggests that "these decreases are partially driven by the increase in energy offtake by the DisCos between 2024/Q2 and 2024/Q3."
The increase in revenue generation indicates enhanced liquidity within the power sector, with collection efficiency approaching 90%.
After the elimination of electricity subsidies for Band A customers, Minister of Power Adebayo Adelabu revealed that the government has achieved annual savings of around N1.4 trillion. Nevertheless, experts emphasize that the power sector requires further investment, particularly to tackle the existing infrastructure deficits.
This necessity prompted the federal government to abolish fuel subsidies for Band A users, assuring them of a minimum of 20 hours of electricity supply. However, many regions classified under Band A do not receive the promised 20 hours of service.