NERC Announces ₦509.84bn Revenue Collection by DisCos in Q4 2024
Abuja, Nigeria – In its much-anticipated quarterly report for 2024, the Nigerian Electricity Regulatory Commission (NERC) revealed that electricity distribution companies (DisCos) in the country collected a total revenue of ₦509.84 billion in the fourth quarter. This figure represents a significant portion of the ₦658.40 billion billed to customers during the same period, resulting in a robust collection efficiency of 77.44%—a notable improvement from previous quarters.
Detailed Financial Performance
The NERC report provided a comparative analysis of the third and fourth quarters of 2024. In Q3, DisCos collected ₦466.69 billion from a total billed amount of ₦626.02 billion, equating to a 74.55% collection efficiency. The Q4 performance, marked by an efficiency increase of 2.89 percentage points, underscores a positive trend in revenue collection across the board. Among the various DisCos, Eko and Ikeja emerged as the top performers, with collection efficiencies of 90.00% and 82.63% respectively. Conversely, Jos DisCo recorded the lowest efficiency at 49.68%, highlighting regional disparities that may require further strategic intervention.
Regional Performance and Trends
The report indicated that eight out of the country’s DisCos registered improvements in their collection efficiency between Q3 and Q4. Yola and Kano DisCos were the standout performers, with gains of 13.93 and 9.88 percentage points respectively, suggesting that targeted operational strategies can lead to significant performance improvements. However, not all regions experienced such growth; Abuja and Jos DisCos faced declines in their collection efficiency by 3.39 and 3.61 percentage points respectively. These figures provide regulators and policymakers with critical insights into areas that may benefit from additional support and reform.
Implications for the Nigerian Power Sector
The improved revenue collection efficiency is viewed as a positive indicator for the Nigerian power sector. Enhanced collection rates translate into increased financial stability for DisCos, potentially leading to better maintenance of infrastructure and more reliable power supply for consumers. Industry experts argue that such performance metrics are essential in building investor confidence and stimulating further investment in the country’s power grid.
Looking Forward
The latest figures from NERC have sparked discussions among industry stakeholders about the need for continuous improvements in operational efficiency. With growing pressures to modernize the sector and expand access to electricity, the performance of DisCos in collecting revenue remains a crucial benchmark for success. Regulatory bodies and government agencies are now urged to examine the factors contributing to regional disparities and implement policies that can bolster performance across the board. The report serves as both a progress report and a call to action, emphasizing that the journey towards a more efficient and robust power sector is ongoing and requires concerted efforts from all stakeholders.
