Nigerian Electricity Distribution Companies (DisCos) recorded the sum of N431.16 billion as revenues from customers in Q2 2024, reflecting a collection efficiency of 79.31%.
This is contained in the quarterly report of the Nigerian Electricity Regulatory Commission (NERC) covering the second quarter of 2024.
This performance, derived from a total billing of N543.64 billion, shows a modest increase of 0.20 percentage points compared to the previous quarter’s 79.11% efficiency.
The rise in collection efficiency indicates an improvement in DisCos’ ability to recover billed revenues despite ongoing challenges in the power sector.
DisCos Remittance to Upstream Market Players
In addition to revenue collections, the report shows that DisCos’ remittance to the upstream market players also saw some adjustments.
The cumulative upstream invoice payable by DisCos in Q2 2024 was N399.53 billion, which included N343.76 billion for DRO-adjusted generation costs from the Nigerian Bulk Electricity Trading (NBET) and N55.77 billion for services by the Market Operator (MO).
The DisCos remitted a total of N318.65 billion (N271.87 billion for NBET and M46.78 billion for the MO), leaving an outstanding balance of ₦80.88 billion.
According to the report, this is translated to a remittance performance of 79.76% in Q2 2024, a decline from the 96.93% performance recorded in Q1 2024.
Remittance by Special and Bilateral Customers
Furthermore, the report indicates that the remittance performance by special and bilateral customers reflected similar challenges.
The four International bilateral customers serviced by the NESI paid a cumulative sum of $9.81 million against an invoiced amount of $15.60 million for services rendered in Q2 2024.
Domestically, bilateral customers contributed N1.2 billion against a total invoiced amount of N1.9 billion.
What you should know
- Despite several government interventions, Nigeria’s power sector continues to grapple with significant challenges, primarily due to underinvestment and persistent liquidity shortages.
- In May, the federal government initiated a N130 billion payment as part of efforts to address the N1.3 trillion debt owed to gas suppliers within the Nigerian Electricity Supply Industry (NESI).
- To date, around N205 billion has been disbursed to gas suppliers to enhance electricity output nationwide.
- This ongoing debt repayment is part of a broader government strategy aimed at improving liquidity in the sector and, ultimately, boosting the country’s power supply.
- The sustained challenges in achieving optimal collection rates, managing remittances, and reducing losses highlight broader issues facing Nigeria’s power distribution sector.
