According to the Federal Government, power distribution companies in Nigeria failed to remit a total of N208.8bn to the Nigeria Electricity Supply Industry in 2022.

Data from the Nigerian Electricity Regulatory Commission revealed that the Discos did not make complete remittances throughout the year.

There are 11 power distribution companies in Nigeria responsible for distributing electricity in specific franchise areas.

They were established in 2013 as part of power sector reforms to enhance the efficiency and reliability of electricity supply.

The Discos collect electricity bills from consumers and make remittances to the power market through the Nigerian Bulk Electricity Trading Plc and the Market Operator.

However, they failed to remit N49.23bn, N31.3bn, N58.3bn, and N69.94bn in the fourth, third, second, and first quarters of 2022 respectively, resulting in a total of N208.8bn.

The poor remittance was attributed to higher-than-allowed losses in technical, commercial, and collection aspects.

The power sector in Nigeria faces liquidity challenges, and there have been calls to review the privatization of distribution and generation companies to address the dysfunction in the sector.

Suggestions have been made to break the distribution companies into smaller units to promote a competitive electricity market and reduce monopoly.