Despite complaints of inadequate electricity supply and concerns about the huge indebtedness for power generation, Nigeria's power distribution companies (Discos) generated a total of N292.71 billion in revenue during the first quarter of 2024.
According to the latest fact sheets from the Nigerian Electricity Regulatory Commission (NERC), the 11 Discos collected N95.26 billion in revenue from their customers in January 2024. The total billing for January was N130.92 billion, with a revenue collection of N97.01 billion in February and N100.44 billion in March out of a total billing of N126.56 billion.
However, power producers have continued to complain about the lack of adequate payment for the electricity they produce and supply to the national grid. The sector's indebtedness to companies that produce electricity has increased to N3.7 trillion, posing a threat to further electricity production.
The Association of Power Generation Companies (APGC) has called for urgent action to address the issue of inadequate payment for electricity generated by Gencos and consumed on the national grid. They stated that the inadequate payment is currently threatening the continued operation of their power generation plants and has resulted in a huge debt outlay of over N2 trillion.
The APGC also highlighted the need for a coordinated approach by all stakeholders in the Nigeria Electricity Supply Industry (NESI) to address the liquidity issue realistically and sustainably in the power sector.
They emphasized that Gencos should be accorded the utmost priority when it comes to payment to enable them to continue producing electricity.
The power firms further noted that the payment waterfall in the NESI, which deprioritizes payment to Gencos, is an aberration and a clear departure from existing terms of the Power Purchase Agreement.
