Nigerian electricity distribution companies (DisCos) recorded a total of N431.16 billion in revenue from customers in the second quarter of 2024, reflecting a collection efficiency of 79.31%.
This is contained in the quarterly report of the Nigerian Electricity Regulatory Commission (NERC) covering the second quarter of 2024.
This performance is calculated from a total bill of N543.64 billion and represents a slight increase of 0.20 percentage points compared to the previous quarter's efficiency of 79.11%.
The improvement in collection efficiency indicates that DisCos are improving their ability to collect billed revenue despite ongoing challenges in the power sector.
DisCos remittances to upstream market players The report indicates that in addition to revenue collections, there was also some adjustment in disco remittances to upstream market players.
The cumulative upstream bill payable by DisCos in Q2 2024 is NOK 399.53 billion, including NOK 343.76 billion in DRO-adjusted generation costs from the Nigeria Bulk Electricity Trading (NBET) and market operations. 55.77 billion for services provided by persons (MO). ).
DisCos transferred a total of N318.65 billion (NBET N271.87 billion and MO N46.78 billion) with an outstanding balance of R80.88 billion.
According to the report, this corresponds to a remittance performance of 79.76% in Q2 2024, down from the 96.93% performance recorded in Q1 2024.
Special customer and two-way customer remittances Additionally, the report shows that remittance performance by special and bilateral customers reflects similar challenges.
The four international bilateral customers served by NESI paid a cumulative total of $9.81 million on an invoice of $15.6 million for services rendered in the second quarter of 2024.
Domestically, bilateral customers contributed N1.2 billion against a total bill of N1.9 billion.
What you need to know Despite several government interventions, Nigeria’s power sector continues to grapple with significant challenges, primarily due to underinvestment and chronic liquidity deficiencies. In May, the Federal Government began disbursing N130 billion as part of the N1.3 trillion initiative. It is a debt owed to gas suppliers within the Nigerian Electricity Supply Industry (NESI). To date, about N205 billion has been paid to gas suppliers to increase power generation across the country. This continued debt repayment is part of a broader government strategy aimed at improving liquidity in the Nigerian Electricity Supply Industry (NESI). Continuing challenges in achieving optimal recovery rates, managing remittances and reducing losses highlight the broader challenges facing Nigeria’s electricity distribution sector. Read breaking news and market intelligence.
