A recent report has revealed a significant increase in revenue generation by electricity distribution companies (DisCos) in Nigeria, despite the ongoing challenges of erratic power supply across the nation.
According to the latest data released by the National Bureau of Statistics on Monday, revenue generated by DisCos reached a staggering N1.1 trillion within the 12 months of 2023.
This figure marks a notable increase of N234.4 billion, equivalent to 28.2 percent, compared to the N831 billion generated over a similar period in 2022.
The report also highlights the frequency of power grid collapses experienced throughout the year, with Nigeria’s national power grid reportedly collapsing 46 times between 2017 and 2023, according to the International Energy Agency.
Nigerians faced numerous nationwide blackouts in 2023, notably on September 14, when a major transmission line fire led to a grid collapse.
Despite these challenges, DisCos continued to report substantial revenue gains, largely attributed to the practice of overbilling customers.
An analysis of the revenue data revealed that Ikeja Electricity Distribution Company led the pack with the highest revenue of N218.6 billion, a notable increase of 31.7 percent from N165.9 billion in 2022.
Following closely was Eko Distribution Company, which saw a revenue increase of N52.8 billion, equivalent to 42.3 percent, from N124.8 billion in 2022.
Other notable performers include Abuja Electricity Distribution Company, recording a revenue generation of N167.4 billion, Ibadan Electricity Distribution Company with N111.3 billion, and Enugu Electricity Distribution Company with N82.5 billion.
Yola Electricity Distribution Company (N22.3bn), Benin Electricity Distribution Company (N84.6bn), and Kaduna Electricity Distribution Company (N32.4bn).
Also, Jos Electricity Distribution Company increased its revenue to N38.9bn, Kano Electricity Distribution Company (N55.2bn) and Port-Harcourt Electricity Distribution Company (N74.7bn).
The report also highlighted a rise in the efficiency of revenue collection, potentially linked to increased overbilling of customers, particularly those under the estimated billing system.
Additionally, DisCos were observed to have captured more customers under the estimated billing system. Further analysis revealed a 9.38 percent increase in the number of metered customers, while the number of customers under estimated billing decreased slightly by 1.73 percent, totaling 5.8 million.
