Eleven power distribution companies in Nigeria, as well as consumers in Benin, Niger, and Togo, have failed to pay their electricity bills, resulting in a loss of over N1.4tn in revenue. The power distribution companies, known as Discos, issue invoices based on meter bands and the number of hours of electricity supplied, while some customers with prepaid meters load prepaid power units onto their meters. Quarterly reports and energy sales records published by the Nigerian Electricity Regulatory Commission show that out of the N4.30tn billed customers, only N2.92tn was reimbursed to the companies, representing a collection efficiency of over 55 per cent. The Discos are heavily indebted to local banks, with a debt of N2tn owed to power generation companies.
Last week, the Market Operator disconnected three Discos, throwing customers in their franchise areas into darkness for days. However, they were reconnected on May 1, 2023, following the intervention of the Minister of Power, who gave them 60 days to settle their outstanding invoices. The Discos billed Nigerians N690.2bn in 2018, N730.88bn in 2019, N816.16bn in 2020, N1.1tn in 2021, and N840.18bn in 2022, but revenue receipts showed that N442.3bn was collected in 2018; N483.65 in 2019; N542.73bn in 2020; N771.3bn in 2021; and N596.63bn in three quarters of 2022.
Neighbouring customers, including Benin, Togo, and Niger, owe Nigerian power distribution firms N22.55bn for unremitted payment for electricity supplied in five years. The power firms are also indebted to the Nigerian Bulk Electricity Trading Company Plc and the power market operator. Under an international treaty, Nigeria sells electricity to neighbouring countries like Benin Republic, Togo, and Niger Republic through Paras-SBEE, Transcorp-SBEE, and Mainstream-NIGERLEC, respectively. The commission did not specify the number of megawatts supplied to the countries in the same period. The Nigerian government has continued to engage governments of neighbouring countries benefiting from the export supply to ensure timely payment for the electricity purchased from Nigeria.
