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FG owes DisCos over N500 billion in electricity Subsidy – PwC 

The Federal Government owes the 11 DisCos in Nigeria over N500 billion in what is described as tariff shortfall from electricity subsidy.



FG owes DisCos over N500 billion to electricity Subsidy - PwC 

The Federal Government owes the 11 Electricity Distribution Companies (DisCos) in Nigeria over N500 billion in what is described as tariff shortfall from electricity subsidy. This is disclosed in a recently published white paper by PwC titled, ‘Solving the liquidity crunch in the Nigeria Power Sector’.

According to the report by PwC, the electricity subsidy payment being owed by the FG to the power distribution companies is expected to rise to N522 billion in 2019, a 36% increase relative to the N384 billion that was owed in 2018. The debt has been soaring over the years, climbing to N235 billion in 2016, from N165 billion in 2015.

Electricity Subsidy

Essentially, tariff shortfall is the difference between the end-user cost-reflective tariff and the end-user allowed tariff (actual tariff) DicCos currently charge their consumers. It is money due to DisCos from customers.

[READ MORE: Discos to invest N935 billion in 5 years amidst recapitalisation calls]

Meanwhile, the shortfall is to be paid by the Federal Government, via the Power Sector Recovery Plan (PSRP) as part of the electricity subsidy.

In 2018 only, the tariff shortfall recorded by the 11 DisCos amounted to N384 billion. According to the PwC report, this was due to the fact that electricity consumers were not charged the cost-reflective tariffs.

FG owes DisCos over N500 billion to electricity Subsidy - PwC 

DisCos 6-year loss

While Nigeria’s power sector faces several challenges, electricity distribution companies in Nigeria have steadily reported losses since their emergence in 2013. According to PwC report, there has been a steady growth in the amount of loss reported. In 2017, the total loss reported by DisCos stood at N417 billion.

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As at 2017, Abuja and Ikeja Electric were the two most indebted power distribution companies in Nigeria. Also, since inception in 2013, electricity distribution companies in Nigeria have grown their long term indebtedness. Based on available financial reports, a sum of N98.1 billion is owed by 8 Discos with Ibadan Distribution Company recording the highest borrowings as at 2018.

Specifically, a total of N661.6 billion worth of electricity was billed by DisCos in 2018 but N437.9 billion was only received. This means only 66% of electricity billed was collected in revenue.

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FG’s Intervention

It was disclosed that the challenges facing the power sector, range from low collection, non-cost reflective tariffs, and distribution losses, amongst others, hence, DisCos are unable to meet their obligations to NBET and this, in turn, spirals to other players in the power value chain (GENCOs, TCN, gas companies, banks etc.).

According to the PwC report, the liquidity crisis, which is the most critical challenge of the sector, necessitated the government’s intervention on three occasions to avoid total collapse of the sector.

[READ ALSO: FG may withdraw licenses of Abuja, 7 other Discos in 60 days]

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Also according to the report, the Federal Government approved a loan of N213 billion for DisCos in 2014; the Federal Executive Council approved N701 billion in 2017, while FG also signed the release of N600 billion for the power sector which was reportedly meant for shortfall in the payment of monthly invoices by key stakeholders in the sector.

As earlier published on Nairametrics, the PwC recommended that the possible solution to the problem of liquidity crunch facing the DisCos was to start supplying 50% of distributable electricity to Nigerian companies. According to the report, this should be done provided the companies are willing to pay N80 per kilowatt while the remaining 50% can then be shared among residential consumers.

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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FG to distribute 10 million LPG gas cylinders in 1 year

The FG is set to inject up to 10 million gas cylinders into the market to help improve safety and deepen cooking gas utilization.



The Federal Government has announced plans to inject 5 to 10 million Liquefied Petroleum Gas (LPG) cylinders into the market in the next one year.

This is to help improve safety and deepen LPG (otherwise known as cooking gas) utilization across the country.

This disclosure was made by the Programme Manager, National LPG Expansion Implementation Plan, Mr Dayo Adeshina, at a sensitisation workshop on LPG Adoption and Implementation for Industry Stakeholders, on Wednesday in Lagos.

According to a report from the News Agency of Nigeria (NAN), Adeshina said the National LPG Expansion Implementation Plan, domiciled in the Office of the Vice President, was committed to achieving Nigeria’s target of 5 million Metric Tonnes of LPG consumption annually by 2027.

What the Programme Manager for LPG Expansion Implementation Plan is saying

Adeshina said, “The Federal Government is working towards injecting five to 10 million cooking gas cylinders into the market within the next one year. We are starting the cylinder injection under the first phase in 11 pilot states and FCT, with two states from each of the geopolitical zones.

The states are Lagos, Ogun, Bauchi, Gombe, Katsina, Sokoto, Delta, Bayelsa, Ebonyi, Enugu, Niger and the Federal Capital Territory. The cylinders will be injected through the marketers. The marketers will be responsible for the cylinders and the exchange will take place in homes and not in filling stations.

What this means is that going forward, cylinders will not be owned by individuals but by the marketers who will ensure that they are safe for usage.’

Adeshina pointed out that apart from household consumption, the government was trying to increase LPG usage in agriculture, transportation and manufacturing adding that this will enable the country to reduce CO2 emission by about 20% and create millions of jobs for Nigerians.

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He said that the government had also granted waivers on importation of LPG equipment and removed Value Added Tax (VAT) on LPG in addition to investment in infrastructure.

The President of the Nigerian Liquefied Petroleum Gas Association, Mr Nuhu Yakubu, said efforts should be made to ensure the availability, accessibility and affordability of cooking gas in the country adding that this would encourage more Nigerians to embrace gas usage in their homes with the attendant benefits to the country.

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Mr Olalere Odusote, Lagos State Commissioner for Energy and Mineral Resources, said the population of Lagos makes it imperative for residents to adopt cleaner energy sources for cooking, transportation and power generation adding that the government was targeting the conversion of 45% of about 4 million vehicles in the state to autogas over a four-year period in partnership with marketers.

What you should know

  • It can be recalled that the Federal Government had in November 2020, announced plans for the conversion of cars to autogas in a bid to have cheaper and cleaner energy especially with the high cost of petrol.
  • The government at different levels are pursuing cleaner energy sources for cooking, transportation and power generation.

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JAMB bans use of email by candidates for UTME, DE registration

JAMB has announced that candidates for the UTME and Direct Entry will no longer be required to provide their email addresses at the point of registration.



The Joint Admission and Matriculation Board (JAMB) has announced that candidates for the Unified Tertiary Matriculation Examination (UTME) and Direct Entry will no longer be required to provide their email addresses at the point of registration.

The new adjustment is to protect candidates from various forms of manipulation and distortion of their personal details by some fraudulent cyber café operators.

The Registrar of JAMB, Prof. Is-haq Oloyede, who made the disclosure while addressing newsmen at the board’s headquarters on Wednesday in Bwari, Abuja, said the change, would take effect from Thursday, April 15, 2021.

What the JAMB Registrar is saying

Oloyede said, “They gain access to profiles of these candidates under the pretense of creating an email address for them. Then they change and block the candidates from receiving messages from the board. They also extort them after they change their passwords.

In view of this, the board has come up with adjustments to our operations. The first decision is that beginning from Thursday, April 15, candidates would no longer be required to provide any email address during registration from this year onwards.

It is by going to these cyber cafes to open emails that these candidates are open to abuse and stealing of their personal data,’’ he said.

He said that the board now had a mobile app that would allow candidates to deal directly with the board with their smartphones or via SMS to ‘55019’ code option.

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The code option, he explained, would allow candidates to check admission status as well as all other verifications via SMS.

He said, “Printing of examination slips, results notification or raising tickets can be done anywhere by using candidates’ registration number only. However, at the close of registration every year, we would need the email addresses of the candidates so we can have access to as many of them as possible.

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At the conclusion of registration, candidates are expected to send their email addresses through the mobile app or text message to the 55019 code twice, for validation. This is to update their profile with JAMB as the email will no longer be used as access to their profile, but rather as a communication tool with candidates.’

While advising candidates to guard their phones with utmost care as it was the weapon for all transactions, Oloyede said that henceforth, all JAMB owned Computer-Based Tests (CBT) centres across the country, would only allow candidates with ATM cards into its centres.

He said that in order to cut down on the activities of fraudsters who hijack candidates to extort money from them, the centres would no longer allow candidates go outside the centres to pay for their e-pins and other cash transactions.

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The JAMB Registrar said, “Only candidates with ATM cards will be allowed into all JAMB owned CBT centres, it can be that of their parents as long as they have the pin for the transaction.

“Those without ATM cards can go to other privately owned CBT centres where they can pay cash to register but we will not take cash or transact outside our centres.’’

What you should know

Meanwhile, in a related development, JAMB had said that the board lost over N10 million in 2020 to activities of fraudsters who penetrated their payment portal for ad-hoc staff.

The JAMB Registrar said that the money, which was meant to pay JAMB ad-hoc staff from the 2020 Unified Tertiary Matriculation Examination (UTME), was hijacked by the suspected fraudsters.

JAMB had a few days ago confirmed the commencement of registration for the 2021 UTME/DE examinations after the initial hiccup.

It stated that applicants must provide NIN at the point of registration with the registration by Direct Entry candidates to run concurrently with that of UTME candidates.

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