“ELECTRICITY: Despite Privatization, Power Distribution Still Hovering Around 4,500MW – Report
By Munachimso Obienyi
There are strong indications that the delivery of 10,000 Megawatts (MW) under the revised energy sector plan is set to fail again as investigations by NwafoLive revealed that power distribution is still hovering around 3,500MW- 4,500 MW.
The apex project, which sets out the medium-term structural reforms to diversify Nigeria’s economy, with a top priority of expanding power sector infrastructure, initially scheduled for execution between 2017 and 2021, under the Federal Government’s Economic Recovery and Growth Plan, ERGP, was extended to December 2022.
However, despite the sector being handed over to private investors about 9 years ago, power generation by Gencos and distribution by Discos has failed to meet up with the FG’s 10,000MW target.
Figures obtained from the Nigerian Electricity Regulatory Commission on Monday showed that power consumers in Nigeria got a total bill of N1.12 trillion in 2021 but paid N775.33 billion leaving a shortfall of N341.42bn.
Furthermore, payments were made to the 11 power distribution companies in Nigeria despite the blackouts witnessed in many parts of the country by consumers.
The NERC revealed this in four of its quarterly reports, as it only completed the reports for the review year by publishing the 4th quarter 2021 report recently.
An analysis of the various reports by NwafoLive indicated that power users paid N186.34 billion for electricity in the first quarter of 2021, while they were billed N271.85 billion by the Discos.
Commenting on the commercial performance of the distribution companies in Q1 2021, the NERC said, “The financial viability and commercial performance of the industry recorded a marginal improvement in 2021/Q1”.
The total billings by all Discos to registered customers during the quarter under review were N271.85 billion, an increase of 4.6 per cent from the N259.90 billion recorded in the preceding quarter. However, only N186.34 billion (or 68.55 per cent) was collected.”
In the second quarter, the commission stated that “the total billing to and collection from electricity consumers by all the Discos stood at N268.97 billion and N185.29 billion respectively during the quarter under review, implying a collection efficiency of 68.89 per cent.”
For Q3 2021, the power sector regulator stated that the total revenue collected by all Discos was N193.53 billion, out of the N273 billion billed to customers.
“This represents a collection efficiency of 70.89 per cent as compared to 68.89 per cent recorded in 2021/Q2,” the commission stated.
