Nigeria’s electricity distribution companies saw their collective revenue jump to N570.25 billion ($370 million) in the third quarter, a 22 percent increase from the same period last year, even as persistent power outages continue to frustrate millions of customers across Africa’s most populous nation.
The revenue growth comes despite a decline in actual energy billed to customers, which fell to 6,158.54 gigawatt-hours from 6,449.82 GWh in the previous quarter, according to data from the Nigerian Electricity Regulatory Commission released Tuesday.
Ikeja Electric led the 11 distribution companies with N117.08 billion in collections, followed by Eko Electricity Distribution with N101.11 billion and Abuja Electricity Distribution at N90.73 billion. By contrast, Yola, Kaduna, and Jos recorded the lowest revenues at N9.24 billion, N12.28 billion, and N16.92 billion, respectively.
The sector’s collection efficiency stood at 80.7percent, leaving a N136.36 billion gap between what was billed and what was actually collected from customers.
The shortfall underscores ongoing challenges in a power sector where electricity theft, estimated billing, and infrastructure decay remain endemic.
Only 55 percent of Nigeria’s 12 million registered electricity customers have meters, forcing nearly half to rely on estimated bills that consumer advocacy groups say are often inflated.
During the quarter, distribution companies installed 228,614 meters, a marginal increase from the previous period, with most coming through the government’s Meter Asset Provider program.
The revenue increase reflects recent tariff adjustments rather than improved service delivery.
Nigeria’s government continues to subsidize electricity costs, incurring N458.75 billion in obligations during the quarter as it bridges the gap between cost-reflective tariffs and what consumers actually pay.
The subsidy burden has become a flashpoint in economic policy debates as President Bola Tinubu’s administration grapples with fiscal pressures following the removal of fuel subsidies last year.
Energy analysts warn that without substantial investment in generation and transmission infrastructure, revenue growth alone won’t solve Nigeria’s chronic power crisis.
Nigeria generates roughly 4,000 megawatts on average for a population exceeding 200 million people, a fraction of what South Africa produces for 60 million residents.
Frequent grid collapses and gas supply shortages to power plants mean many Nigerians rely on diesel generators, imposing heavy costs on businesses and households alike.
