Nigerians spent N1.4tr on epileptic power, DisCos owed N385b 

NERC issues 118 licences, permit as metering tops consumers’ complaints

Despite persistent issues with electricity supply in the country, consumers spent about N1.4 trillion on electricity in 2023, while Distribution Companies (DisCos) struggled with collection inefficiencies, leaving over N385 billion unpaid.

The Nigerian Electricity Regulatory Commission (NERC), in its 2023 report, also revealed that about 118 new licences, permits and approvals were given last year.

However, challenges over metering persist as DisCos fail to meet the metering threshold.

NERC said DisCos collected N1.08 trillion of the N1.46 trillion billed, resulting in a collection efficiency of 73.64 per cent. This means that for every N100 billed, approximately N26.36 was not recovered, posing a significant challenge to the financial liquidity of the Nigerian Electricity Supply Industry (NESI).

Ikeja DisCo led the pack with collection efficiency above 90 per cent, partly due to its strong metering rate of 72.54 per cent. Other top-performing DisCos included Eko and Abuja, with efficiencies of 84.31 per cent and 80.19 per cent respectively. On the flip side, Yola DisCo recorded the lowest collection efficiency at 43.56 per cent.

In 2023, NERC issued 118 new licences and permits across multiple sectors of the power industry. These included licences for on-grid, off-grid and embedded generation, captive power, mini-grid operations and meter service providers, reflecting efforts to expand Nigeria’s electricity infrastructure. However, ongoing challenges with metering remained a top concern.

Of the 1.2 million complaints filed by customers, 53.09 per cent related to metering issues, underscoring the frustration felt by many over inaccurate billing and service interruptions.
In total, 672,539 meters were installed nationwide, with Ikeja, Ibadan and Abuja DisCos leading in installations, while Kano DisCo lagged with the lowest number of installations.

The report highlighted significant issues with Nigeria’s power generation capacity as the average available capacity from the country’s 27 grid-connected power plants was 4,544.31 megawatts (MW) in 2023, with March, October and November seeing peak generation.

NERC disclosed that much of the available capacity was hampered by mechanical outages, caused primarily by ageing infrastructure.

The report noted that many plants were over 21 years old, combined with inadequate maintenance and gas supply challenges.

NERC also reported three incidents of system collapse in 2023, disrupting the already fragile grid.

According to the regulator, liquidity challenges, underpayment of Generation Companies (GenCos) by DisCos and limited gas supply agreements continue to cripple efforts to maintain and expand Nigeria’s power generation capacity.

To remedy the situation, the report suggests stronger enforcement of payment discipline on DisCos and timely government subsidies to provide generation GenCos with the necessary capital for maintaining and upgrading infrastructure.