The Nigerian Electricity Regulatory Commission (NERC) on Tuesday announced that Electricity Distribution Companies (DisCos) collected N509.84 billion in the fourth quarter of 2024 (Q4 2024) out of the N658.40 billion billed to customers.
This was disclosed in NERC’s 2024 Fourth Quarter Report, published on its website in Abuja. According to the report, this translates to a collection efficiency of 77.44%, marking an improvement from the previous quarter.
Quarter-on-Quarter Performance Comparison
In Q3 2024, DisCos collected N466.69 billion from the N626.02 billion billed, resulting in a 74.55% collection efficiency. The latest figures indicate a 2.89 percentage point increase in efficiency between Q3 and Q4 of 2024.
Top and Bottom Performers
- Eko DisCo maintained its lead with the highest collection efficiency at 90%, followed by Ikeja DisCo at 82.63%, both retaining their top positions from Q3 2024.
- Jos DisCo recorded the lowest efficiency at 49.68%, reflecting persistent challenges in revenue collection.
Improvements and Declines Across DisCos
The report highlighted that eight DisCos improved their collection efficiency between Q3 and Q4 of 2024, with Yola and Kano DisCos recording the most significant gains.
However, three DisCos saw declines, with Jos and Abuja DisCos experiencing the sharpest drops in efficiency.
Factors Influencing Revenue Collection
NERC attributed the overall improvement to:
- Enhanced metering initiatives, reducing energy theft and improving billing accuracy.
- Stricter enforcement of collections by some DisCos.
- Increased customer compliance due to regulatory measures.
Challenges Persist
Despite the progress, the report noted that non-payment and energy theft remain major hurdles, particularly in regions with lower collection rates. The commission reiterated its commitment to sanctions and incentives to drive further improvements in 2025.
Industry Implications
The rise in DisCos’ revenue signals a positive trend for Nigeria’s power sector, which has long struggled with liquidity issues. However, experts argue that sustained reforms, including cost-reflective tariffs and infrastructure upgrades, are necessary to ensure long-term stability.
NERC’s report comes amid ongoing discussions about electricity tariff adjustments and the need for DisCos to reduce Aggregate Technical, Commercial, and Collection (ATC&C) losses.
Stakeholders anticipate further regulatory interventions to boost collection efficiency, including:
- Expanded metering programs under the National Mass Metering Initiative.
- Digital payment solutions to ease customer remittances.
- Stronger penalties for defaulting customers.
Nairametrics reports that the efficiency rate of Discos decreased by 4.76 percentage points, dropping from 79.31% in Q2 to 74.55% in Q3.
In Q3, DisCos collected N466.69 billion out of the N626.02 billion billed to customers, compared to N431.16 billion collected from N543.64 billion billed in Q2, the report noted.
