DISCOS EARN N801BN DESPITE PERSISTENT BLACKOUTS

Electricity distribution companies (DisCos) in Nigeria raked in N801 billion in revenue over the past year despite widespread and persistent power outages that continue to frustrate consumers and cripple economic activities.

According to data released by the Nigerian Electricity Regulatory Commission (NERC) on Friday, the 11 DisCos recorded a significant increase in collections, driven largely by higher tariffs and improved billing efficiency. However, the report also highlighted ongoing challenges including low supply from the generation companies and high levels of technical and commercial losses.

NERC Chairman, Dr. Sanusi Garba, acknowledged the revenue growth but expressed concern over the quality of service. “While we note the improvement in revenue, it is unacceptable that consumers continue to experience prolonged blackouts. DisCos must invest more in infrastructure upgrade and loss reduction to justify the tariffs paid by Nigerians,” Garba stated.

Industry stakeholders have criticised the DisCos for what they described as “profiting from darkness.” Many consumers, especially in industrial and commercial hubs, reported spending heavily on alternative power sources such as generators, further increasing their operational costs.

The Manufacturers Association of Nigeria (MAN) called for urgent regulatory intervention. “It is unfair for DisCos to collect billions while failing to deliver commensurate power supply. The government must enforce performance benchmarks and sanctions where necessary,” a MAN representative said.

The NERC report revealed that average daily power supply remained below 4,000 megawatts nationwide, far below the country’s estimated demand. Technical losses stood at 8.5% while commercial losses were estimated at 12.3%.

DisCos defended their performance, citing challenges with gas supply to power plants, vandalisation of infrastructure, and liquidity issues within the sector. They pledged continued investment in metering and network rehabilitation to improve service delivery.

As Nigerians continue to grapple with unreliable electricity supply, analysts say the huge revenue figures underscore the need for greater accountability and accelerated reforms in the power sector to match collections with actual service quality.