Nigeria’s electricity distribution companies collectively generated about N3.95 trillion in revenue between 2019 and the first quarter of 2024.
This was disclosed through NBS data curled from the Nigerian Electricity Regulatory Commission.
Further analysis showed an upward trajectory in revenue generation over the past five years.
A breakdown of the revenue collection indicated that the power distributors made N482.6 billion in 2019, N526.8 billion in 2020, N761.2bn in 2021, N828.1bn in 2022, N1.07bn in 2023, and N291.6 billion in the first quarter of 2024.
Analysts with the Nigerian Electricity Supply Industry, NESI attributed this consistent growth in revenue to several factors, including ongoing tariff adjustments moving towards cost-reflective pricing, which has allowed the Discos to align revenue with the cost of providing electricity.
Also, the National Mass Metering Programme has increased the number of metered customers, reducing estimated billing and improving the accuracy of revenue collection.
NMMP has also contributed to reducing Aggregate Technical, Commercial, and Collection losses that have previously plagued the sector.
Meanwhile, despite this revenue growth, the Discos face significant challenges, including high unpaid bills, electricity theft, infrastructure deficits, and energy losses.