Amid N300b loss, NDPHC targets solar, mini-hydro in North

Electricity Distribution Companies (DisCos) recorded a N48.85 billion revenue collection shortfall in June 2026, after collecting only N191.86 billion out of the N240.71 billion they billed customers during the month.

Despite the loss, the Chairman, House Committee on Power, Victor Nwokolo, charged them to take urgent steps to clear their debts, stressing improved liquidity as critical to strengthening the electricity market and ensuring the sustainability of the power sector.

Meanwhile, having recorded over N300 billion loss due to suppressed and stranded capacity, with over 1,500MW of mechanically available generation capacity but allocated an hourly dispatch of about 500MW, the Niger Delta Power Holding Company (NDPHC) is targeting solar and hydro power projects in the North.

The latest commercial performance report, released yesterday by the Nigerian Electricity Regulatory Commission (NERC) showed that the DisCos’ collection efficiency fell to 79.71 per cent, representing a 2.61 percentage-point decline from May.

The 11 DisCos billed customers N240.71 billion during the month but collected only N191.86 billion, leaving nearly N49 billion unrecovered.

Among the DisCos, Benin Electricity Distribution Company (BEDC) recorded the highest collection efficiency at 94 per cent, followed by Ikeja Electric (IE) at 89 per cent and Eko Electricity Distribution Company (EKEDC) at 88.64 per cent.

The weakest collection performances were recorded by Kano at 42.16 per cent, Kaduna at 46.13 per cent and Jos at 55.18 per cent.

NERC’s June 2026 commercial performance fact sheet also showed that the industry’s revenue recovery efficiency fell to 74.24 per cent, a decline of 3.07 percentage points from May.

This means the DisCos recovered just about three-quarters of the revenue allowed for collection during the period.

The commission put the allowed average tariff at N130.15 per kilowatt-hour, while the actual average collection stood at N96.63/kWh in June. The difference of N33.52/kWh between the allowed tariff and actual collection translated into a recovery efficiency of 74.24 per cent.

This comes as the DisCos continue to grapple with the challenge of converting electricity supplied and billed to customers into actual cash collections.

THE indebted DisCos, according to the House Committee, are BEDC, Enugu Electricity Distribution Company (EEDC), Ibadan Electricity Distribution Company (IBEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electricity Distribution Company (KAEDCO), Port Harcourt Electricity Distribution Company (PHEDC) and Kano Electricity Distribution Company (KEDCO).

In a statement, Onyemaechi expressed concern over the accumulation of market debts by the affected DisCos, noting that prolonged failure to meet financial obligations could adversely affect the liquidity and sustainability of the electricity market.

He, therefore, called on the indebted DisCos to make every effort within their capacity to settle their outstanding obligations and strengthen compliance with the rules governing the electricity market.

Welcoming the lawmakers to the Nigerian Independent System Operator (NISO) office in Abuja, the Managing Director/Chief Executive Officer, Abdu Mohammed, commended the committee for its oversight role and continued support for reforms in Nigeria’s electricity sector.

He noted that the establishment of NISO was a significant outcome of the reforms introduced under the Electricity Act, 2023, which provided the framework for the unbundling of the Transmission Company of Nigeria (TCN) and the establishment of an independent system operator.

MANAGING Director and Chief Executive Officer of NDPHC, Jennifer Adighije, during an oversight visit to the company’s headquarters by the House of Representatives Committee on Power, chaired by Victor Nwokolo, mentioned that the company had more than 1,500MW of mechanically available generation capacity but was allocated an hourly dispatch of about 500MW, resulting in significant suppressed and stranded capacity.

She estimated that the situation had cost the company more than N300 billion and called for regulatory intervention to review the dispatch merit order.

Adighije also appealed to the committee to intervene in outstanding debts owed NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc (NBET), which she said had accumulated liabilities of more than N400 billion.

She also asked for the settlement of obligations arising from its assets recognised in the Transmission Company of Nigeria’s (TCN) regulated asset base.

The MD explained that NDPHC contributes about 4,000 megawatts to the country’s installed generation capacity of approximately 12,000MW, representing about 30 per cent.

The company, she added, had built 10 power plants under NIPP Phase 1, seven of which are commercially operational, while two are under construction and one is undergoing upgrades.

She, however, mentioned that the company is preparing to transition to the second phase of the National Integrated Power Project (NIPP), with a focus on renewable energy investments to improve electricity supply, particularly in northern Nigeria.

She stressed that the NIPP Phase 2 would diversify the country’s generation mix by harnessing the renewable energy potential in northern Nigeria, particularly solar and tidal resources.

Nwokolo commended NDPHC management for its efforts to improve electricity generation, describing the company’s work as critical to the entire power value chain.

“We have also been to their power stations. Honestly, they are taking some reasonable, very reasonable actions towards making Nigeria’s access to electricity,” Nwokolo said.