Financial Energy Review
The Nigerian Electricity Regulatory Commission (NERC) has announced that power distribution companies (DisCos) in Nigeria remitted ₦706.73 billion in 2023. This information was disclosed in NERC’s 2023 annual report and accounts, released on Monday.
According to the report, DisCos received a total invoice of ₦858.03 billion for energy supplied by the Nigerian Bulk Electricity Trading (NBET) and for service charges from the market operator (MO). Despite remitting ₦706.73 billion, the companies recorded a deficit of ₦151.3 billion, representing an overall remittance performance of 82.37%.
Of the total invoice, NBET issued ₦685.69 billion, and DisCos remitted ₦578.43 billion, achieving an 84.34% remittance performance. The top-performing DisCos in this category were Eko (105.76%), Yola (105.24%), Ikeja (96.20%), Benin (95.15%), and Ibadan (93.11%). However, Kaduna DisCo had the lowest performance with a remittance rate of just 17.59%.
The MO issued an invoice of ₦172.33 billion in 2023, of which the DisCos remitted ₦128.40 billion, translating to a 74.51% remittance performance. The leading companies in this category were Yola (90.91%), Eko (90.85%), and Ikeja (90.38%), all achieving over 90%. Kaduna DisCo again lagged behind, remitting only 10.75% to the MO.
Earlier this year, NERC dissolved the board of directors of Kaduna Electricity Distribution Company due to its inability to pay ₦110 billion in debt owed to the Nigerian Electricity Supply Industry (NESI).
