Nigeria’s electricity Distribution Companies (DisCos) suffered a revenue shortfall of ₦60.25 billion in December 2024, worsening the liquidity challenges plaguing the power sector.
Data from the Nigerian Electricity Regulatory Commission (NERC) revealed that DisCos billed customers ₦238.21 billion for electricity but could only collect ₦177.96 billion, translating to a collection efficiency of 74.71%.
The ongoing revenue gap has sparked concerns about the viability of the power sector, as the total revenue collected by DisCos in Q3 2024 stood at ₦466.69 billion—a decline compared to Q2 2024, when efficiency was recorded at 79.31%.
The Association of Nigerian Electricity Distributors (ANED) has repeatedly warned that DisCos’ inability to recover billed revenue is limiting their ability to invest in infrastructure, maintain networks, and pay power generation companies (GenCos). The result has been persistent power supply challenges across the country.
NERC also reported that no DisCo met its Aggregate Technical, Commercial, and Collection (ATC&C) loss reduction targets in Q3 2024. The worst performance was recorded by Kaduna DisCo, with an actual ATC&C loss of 70.84%—far exceeding its 25% target.
Amid these challenges, Minister of Power Adebayo Adelabu recently disclosed the federal government’s plan to restructure DisCos, citing their reluctance to invest in the sector.
“This year, we will focus on restructuring DisCos,” Adelabu stated. “They are not willing to invest further, and their balance sheets are not strong enough to attract financing.”
As part of ongoing reforms, the Lagos State government recently assumed regulatory control over Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDC). Similarly, in Kogi State, regulatory oversight of the power sector has shifted from NERC to the Kogi State Electricity Regulatory Commission (KSERC).
