Data from the National Bureau of Statistics revealed that Nigeria’s electricity distribution companies generated significant revenue totaling around N3.95tn between 2019 and the first quarter of 2024. This revenue showed a consistent increase over the years, with experts attributing this growth to factors such as tariff adjustments, the National Mass Metering Programme, enhanced regulatory oversight, and the adoption of modern technology.
Despite this revenue growth, the Discos still face challenges like high unpaid bills, electricity theft, infrastructure deficits, and energy losses, hindering their full potential in the electricity market. The President of the Nigeria Consumer Protection Network expressed concerns about the efficiency of the Discos, calling for urgent reforms and highlighting issues related to metering, collection efficiency, and governance.
The power sector also faces funding shortfalls, as the Transmission Company of Nigeria reported a significant funding gap affecting critical projects. The Minister of Power addressed the high cost of electricity generation and discussed the possibility of introducing a differential tariff system during off-peak periods to stimulate energy demand and improve access across the country.
Efforts are being made to encourage bulk electricity consumers to return to the grid by restoring trust and enhancing grid stability, aiming to provide a more cost-effective and reliable source of power.