Liquidity crisis worsens in power sector, as Discos fail to recover another N54 billion from customers.

• The liquidity situation whitethorn worsen for energy organisation companies successful Nigeria, arsenic they person been incapable to retrieve each their money
• A NERC study shows the billions of naira stay uncollected successful conscionable 1 month, and the magnitude continues to heap up period aft month
• This is simply a origin of interest for investors, arsenic the gencos and discos are besides dealing with debts owed by the government

Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

In these times erstwhile energy procreation and organisation companies successful Nigeria are trying to excavation successful each revenues to lick their liquidity problems, a study has shown that outstanding energy bills proceed to mount.

According to the Nigerian Electricity Regulatory Commission (NERC) factsheet for February 2025, Discos had astir N54 cardinal successful uncollected gross for the month.

Out of N245.93 cardinal billed to customers, the Discos recovered N191.75 billion, marking a 77% gross postulation efficiency.

This latest study shows that the debts owed to Discos successful Nigeria has accrued again. Photo credit: Pius Utomi Ekpei
Source: Getty Images

It besides shows an betterment successful gross postulation by 6.56% compared to the erstwhile month, January 2025.

However, the uncollected bills are piling to worrisome heights. Recall that determination was besides an unrecouped N50 billion successful October 2024.

Billing ratio improves crossed the Discos

Billing ratio improved for the month, with Discos billing 2,137 gigawatt-hours retired of 2,583.19 GWh received.

The 82.73% billing ratio is 1.81% amended than that of January 2025, a comfortableness for investors.

Also successful February, the discos collected an mean of N88.21 per kilowatt-hour compared to the allowed mean tariff of N116.18 per kWh. This marks 75.9% betterment efficiency, astir 10.5% higher than the erstwhile month.

List of Discos and amounts recovered

Abuja Disco recovered N31.7 cardinal retired of N35.67 cardinal successful February 2025. The 89.03% gross postulation ratio puts Abuja Disco successful the lead.

Eko Disco recorded 88.76% postulation efficiency, recovering N36.6 cardinal retired of the full N41.24 cardinal billed to customers, the PUNCH reports.

Enugu Disco has 88.47% postulation ratio for the month, with N15.88 cardinal recovered from the customers retired of a full of N17.95 billion.

Ikeja Disco recovered N33.35 cardinal retired of full billings amounting to N41.18 billion, achieving 81% postulation efficiency.

Ibadan Disco recorded 71.72% postulation efficiency, recovering N19.28 cardinal of the N26.88 cardinal billed to customers successful the 7 states wherever it operates.

The NERC factsheet shows that retired of N6.44 cardinal successful full billings, Aba Power collected N3.47 billion. This is simply a 53.90% gross postulation efficiency, the lowest truthful far.

Investors disquieted astir liquidity problems

Recall that the national authorities is inactive yet to wide over N4 trillion owed to Gencos and Discos, a concern which the powerfulness minister, Adebayo Adelabu, said has crippled the companies from investing successful the much-needed infrastructure.

The debased betterment complaint creates different origin for interest among investors successful this sector.

Minister for power, Adebayo Adelabu, noted that the discos necessitate dense funds to regenerate the wornout infrastructure and amended powerfulness supply. Photo credit: State House/Adebayo Adelabu
Source: Twitter

Stakeholders person opined that metering each customers volition eradicate the problem, but adjacent the national government’s enactment to accelerate metering has not yielded the desired results.

In the lack of these prepaid meters, disputes proceed to hap betwixt the customers and discos astir the accuracy of the estimated billings erstwhile compared to existent consumption.

Recently, the NERC sanctioned 8 Discos for overbilling.

NERC sanctions 7 Discos implicit minimum PCC

In related news, the NERC Quarterly study for Q4 2024 showed that not each Discos met the minimum required energy for consumers.

The NERC Performance Monitoring Framework Orders (NERC/2024/086 – 096) issued connected July 5, 2024, mandates DisCos to offtake astatine slightest 95% of allocated capableness quarterly oregon look sanctions.

Abuja Disco, Kaduna Disco, and 5 others were sanctioned for failing to conscionable the minimum PCC requirement

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng