Electricity Tariff Hike: Discos Rake In ₦887 Billion In Revenue
The revenue generated by electricity distribution companies in Nigeria reached ₦887.86 billion during the first seven months of 2024.
Naija News understands that the revenue soars following an increase in electricity tariffs.
The reported figures were derived from an analysis of data provided by the Nigerian Electricity Regulatory Commission (NERC) regarding the commercial performance of distribution companies (Discos) for the specified period.
The data indicates that out of a total electricity bill of ₦1.14 trillion issued by Discos to their customers, the companies achieved a collection efficiency of 79.7 percent, amounting to ₦887.86 billion during the review period.
A detailed breakdown of the bill collections by Discos from January to July 2024 reveals amounts of ₦95 billion, ₦97 billion, N100.44 billion, N142.92 billion, ₦191.65 billion, ₦150.86 billion, and ₦162.14 billion, culminating in a total of ₦887.86 billion.
Further examination of the data shows that in the same period of 2023, the companies issued bills totaling ₦797.18 billion and successfully collected ₦604.15 billion.
This notable increase in revenue collection is closely linked to the electricity tariff adjustment that took place in April, which raised the rate from ₦66 per kilowatt-hour to N225.
It is worth noting that in response to the demand for a reversal of the electricity tariff increase, the rate was initially adjusted downward to ₦206.68 per kilowatt-hour, only to be subsequently raised to ₦209 per kilowatt-hour.
Despite the implementation of the electricity tariff increase aimed at customers receiving a minimum of 20 hours of power supply, many Nigerians have expressed their dissatisfaction with the financial strain caused by this tariff.
Naija News reports that the situation has been further aggravated as Distribution Companies (Discos) transition more consumers to Band A feeders.
Nevertheless, the Minister of Power, Adebayo Adelabu, has maintained that Nigeria’s electricity tariff remains one of the lowest in comparison to other African nations.
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