Nigeria’s electricity distribution companies have seen a significant boost in revenue, reaching N887.86 billion in the first seven months of 2024. This surge is largely attributed to the electricity tariff hike implemented in April, which increased the rate from N66 per kilowatt-hour to N225.
According to data from the Nigerian Electricity Regulatory Commission, the distribution companies (Discos) issued a total of N1.14 trillion in electricity bills to customers during this period, achieving a 79.7% collection efficiency.
Breaking down the bill collection by month, the figures are January: N95 billion, February: N97 billion, March: N100.44 billion, April: N142.92 billion, May: N191.65 billion, June: N150.86 billion, July: N162.14 billion.
Totaling N887.86 billion, this represents a substantial increase from the same period in 2023, where bills totaled N797.18 billion and collections reached N604.15 billion.
Despite the Minister of Power, Adebayo Adelabu, claiming Nigeria’s electricity tariff is among the cheapest in Africa, many Nigerians have expressed concerns over the financial burden imposed by the tariff hike.
Initially intended for customers receiving at least 20 hours of power supply, the hike has been adjusted to N206.68 per kilowatt-hour and later to N209 per kilowatt-hour.
As Discos migrate more consumers to Band A feeders, the energy cost pain is likely to persist.
