Electricity distribution companies (DisCos) in Nigeria recorded ₦466.69 billion in revenue collection out of ₦626.02 billion billed to customers in the third quarter (Q3) of 2024. Eko Electricity Distribution Company (EKEDC) and Ikeja Electricity Distribution Company (IKEDC) topped the revenue chart, collecting ₦103.11 billion and ₦99.73 billion respectively.
According to the Nigerian Electricity Regulatory Commission’s (NERC) latest quarterly report, the total collection efficiency of all DisCos in Q3 2024 stood at 74.55%, a decline from the 79.31% recorded in Q2 2024. In the previous quarter, DisCos jointly collected ₦431.16 billion out of ₦543.64 billion billed to customers.
Performance by DisCos
Eko Disco maintained the highest collection efficiency at 84.40%, followed by Ikeja Disco with 83.78%. On the other hand, Kaduna, Kano, and Yola DisCos recorded the lowest collection efficiency rates, each falling below 50%.
NERC Analysis of Trends
The report attributed the decrease in collection efficiency to increased energy offtake by DisCos, which often results in energy being allocated to areas with higher inefficiencies.
NERC stated:
“Based on historical trends, it can be deduced that these decreases are partially driven by the increase in energy offtake by the DisCos between 2024/Q2 and 2024/Q3. This is because when there is higher energy offtake, DisCos often allocate the incremental energy to areas where they record higher inefficiencies.”
To address this challenge, NERC highlighted the importance of accurate customer enumeration and end-use customer meter installations as proven methods to improve energy accounting and revenue recovery.
Revenue Highlights for Q3 2024
• Total Billed to Customers: ₦626.02 billion
• Total Revenue Collected: ₦466.69 billion
• Collection Efficiency: 74.55%
• Top Performers:
• Eko Disco – ₦103.11 billion (84.40% efficiency)
• Ikeja Disco – ₦99.73 billion (83.78% efficiency)
• Lowest Performers:
• Kaduna, Kano, and Yola DisCos (less than 50% efficiency).
The report underscores the need for DisCos to focus on improving efficiency and expanding metering infrastructure to boost revenue collection and reduce system inefficiencies.
