AGS NEWS – Nigeria’s electricity distribution companies (Discos) generated approximately N3.95 trillion in revenue from 2019 to the first quarter of 2024, according to data from the National Bureau of Statistics.

The revenue has shown a steady increase over the years, with the Discos earning N482.6 billion in 2019, N526.8 billion in 2020, N761.2 billion in 2021, N828.1 billion in 2022, N1.07 trillion in 2023, and N291.6 billion in the first quarter of 2024.

Experts attribute this growth to tariff adjustments toward cost-reflective pricing and the National Mass Metering Programme, which has improved billing accuracy and reduced losses.

However, despite the revenue increase, Discos face significant challenges, including unpaid bills, electricity theft, infrastructure deficits, and energy losses.

Kunle Olubiyo, President of the Nigeria Consumer Protection Network, criticized the Discos for inefficiency, citing unresolved customer complaints and unfulfilled metering commitments.

ALSO READ: Discos’ monthly revenue increases by N5bn despite outages

He called for urgent reforms and questioned the effectiveness of the Federal Government’s interventions in the sector.

Additionally, the Transmission Company of Nigeria (TCN) reported a funding shortfall of N637.37 billion, delaying the completion of 129 critical projects.

TCN’s Managing Director, Abdulaziz Sule, appealed to the National Assembly for support to address these issues.

Minister of Power, Adebayo Adelabu, revealed that the cost of generating one kilowatt-hour of electricity is N120, leading to high government subsidies.

He suggested introducing a differential tariff system during off-peak hours to improve energy access and restore confidence in the national grid.