Nigeria’s power companies, known as Discos, have seen a significant increase in revenue in the first seven months of 2024. According to the Nigerian Electricity Regulatory Commission (NERC), they earned N887.86 billion, a 46.96% rise from N604.15 billion during the same period in 2023.
The Discos collected 79.7% of what they billed from January to July 2024, which was a total of N1.114 trillion. This big increase in money came after the government raised prices for customers who get at least 20 hours of electricity each day. The price went up from N68 to N225 per kilowatt-hour in April, but it was later lowered to N206.8/kWh because people complained.
The Minister of Power, Adebayo Adelabu, told Nigerians that prices might go down in the next few months as the government works on making more power and distributing it better.
The monthly earnings of the Discos show a consistent increase: January (N95 billion out of N130.92 billion billed), February (N97 billion out of N113 billion), March (N100.44 billion out of N126.56 billion), April (N142.92 billion out of N178.72 billion), May (N139.23 billion out of N191.65 billion), June (N150.86 billion out of N176.57 billion), and July (N162.14 billion out of N197.11 billion).
This pattern of earnings shows that the Discos have already exceeded their 2020 earnings and are likely to surpass their 2021, 2022, and 2023 targets by the end of the year. The National Bureau of Statistics reports that in 2020, the revenue was N526.8 billion; in 2021, it was N761.2 billion; in 2022, it was N828.1 billion; and in 2023, it was N1.1 trillion.
The substantial increase in revenue is expected to help fund important infrastructure projects, which will tackle Nigeria’s electricity supply issues. In May, the government received a $500 million loan from the World Bank to support the distribution sector, with the goal of improving the reliability of power supply and reducing losses.
