Nigeria’s electricity distribution companies have seen a significant increase in revenue over the past five years, reaching N3.95tn between 2019 and the first quarter of 2024, according to data from the National Bureau of Statistics. This growth can be attributed to factors such as tariff adjustments, the National Mass Metering Programme, and enhanced regulatory oversight.
Despite this growth, challenges persist for the Discos, including high unpaid bills, energy theft, and infrastructure deficits. President of the Nigeria Consumer Protection Network, Kunle Olubiyo, has called for urgent reforms in the sector, questioning the efficiency of the Discos.
Furthermore, the Transmission Company of Nigeria is facing funding shortfalls, delaying critical projects. Minister of Power, Adebayo Adelabu, highlighted the high cost of generating electricity and proposed a differential tariff system to stimulate demand during off-peak hours.
Overall, the electricity sector in Nigeria is facing both opportunities and challenges, with a need for reforms to improve efficiency and ensure reliable power supply for all consumers.