Kehinde Fajobi
Revenue for Nigeria’s electricity distribution companies (Discos) surged to ₦887.86 billion in the first seven months of 2024, following a hike in electricity tariffs. This marks a significant increase in collection efficiency, according to data from the Nigerian Electricity Regulatory Commission (NERC).
The NERC report reveals that Discos issued bills totaling ₦1.14 trillion to customers during this period, achieving a collection efficiency of 79.7 percent, or ₦887.86 billion.
A month-by-month breakdown of the revenue collected from January to July 2024 shows the following figures: ₦95bn in January, ₦97bn in February, ₦100.44bn in March, ₦142.92bn in April, ₦191.65bn in May, ₦150.86bn in June, and ₦162.14bn in July.
This compares to the same period in 2023, when Discos issued bills amounting to ₦797.18 billion and collected ₦604.15 billion.
The sharp increase in revenue has been attributed to the electricity tariff hike in April 2024, which saw prices rise from ₦66 per kilowatt-hour to ₦225.
Although the tariff was briefly reduced to ₦206.68 per kilowatt-hour following public outcry, it was later adjusted again to ₦209 per kilowatt-hour.
Despite the tariff being applied only to customers receiving at least 20 hours of daily power supply, many Nigerians have expressed frustration over the financial strain caused by the increased energy costs.
Discos have also been migrating more consumers to Band A feeders, further intensifying the cost burden.
However, the Minister of Power, Adebayo Adelabu, defended the pricing structure, stating, “Nigeria’s electricity tariff is among the cheapest within African countries.”
