DisCos Revenue Hits N431.16bn in Q2 2024 Amid Collection Challenges

Nigerian Electricity Distribution Companies (DisCos) generated N431.16 billion in revenue during the second quarter of 2024, achieving a collection efficiency of 79.31 per cent.

This slight improvement from the previous quarter’s 79.11 per cent collection rate highlights ongoing efforts to recover billed revenues, despite persistent challenges in the nation’s power sector.

According to the Nigerian Electricity Regulatory Commission’s quarterly report, the total amount billed to customers in Q2 2024 was N543.64 billion. While this demonstrates progress in revenue collection, the sector continues to face liquidity issues, exacerbating the need for increased investment in infrastructure to sustain and improve electricity supply.

In terms of payments to upstream market players, DisCos were invoiced N399.53 billion for services rendered in Q2 2024. This included N343.76 billion for generation costs from the Nigerian Bulk Electricity Trading (NBET) and N55.77 billion for the Market Operator.

However, the DisCos managed to remit only N318.65 billion, leaving an outstanding balance of N80.88 billion. This represents a remittance efficiency of 79.76 per cent, down from the 96.93 per cent recorded in the first quarter of 2024.

In addition to the domestic market, payments by international and domestic bilateral customers reflected similar challenges. Four international customers paid a total of $9.81 million out of an invoiced $15.60 million, while domestic bilateral customers contributed N1.2 billion against an invoiced N1.9 billion.

Despite several government interventions aimed at addressing the liquidity crisis in the power sector, including a N130 billion payment to reduce the N1.3 trillion debt owed to gas suppliers, the sector remains burdened by underinvestment and inefficiencies.

So far, N205 billion has been disbursed to improve electricity output, but challenges in collections and remittances continue to strain Nigeria’s power distribution system. These issues underscore the broader need for reforms to stabilize and strengthen the country’s power infrastructure.