Henzodaily.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology and the Stock Market.
Electricity consumers across the country failed to settle a total of N348.84 billion in bills issued by the 11 Electricity Distribution Companies (DisCos).
An analysis of quarterly reports from the Nigerian Electricity Regulatory Commission (NERC) reveals that this amount forms part of the N1.53 trillion billed to customers, of which N1.18 trillion was eventually paid.
DisCos in crisis as electricity consumers refuse to pay N348bn bills in 9 months
Source: UGC
The data indicates that in the first quarter of the year, customers owed N77.03 billion out of the N368.65 billion charged.
In the second quarter, unpaid bills rose to N112.48 billion from the N543.64 billion issued.
By the third quarter, the amount of unpaid bills climbed further to N159.33 billion, out of the N626.02 billion billed to consumers.
The Nigerian Electricity Supply Industry (NESI) has faced a persistent liquidity crisis since its privatisation in 2013, Daily Trust reports.
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This challenge has resulted in trillions of naira in debt across the sector, hindering efforts to upgrade infrastructure.
The federal government remains the largest debtor, maintaining electricity subsidies by delaying tariff reviews for the past seven months.
Experts have emphasized the need for a cost-reflective tariff to reduce the sector’s reliance on government funding.
Although the government approved a tariff increase for the highest electricity consumers in April, it is still projected to spend over N2 trillion on subsidy payments in 2024.
IKEDC, EKEDC upgrade customers to Band A
Meanwhile, Henzodaily.ng earlier reported that Ikeja Electric Plc and Eko Electricity Distribution Company were permitted to incorporate extra Band A feeders into their respective networks.
The electricity distribution firms communicated these updates through individual announcements on their official social media channels.
While Ikeja Electric increased its number of Band A feeders by 34, EKEDC increased its own by 33 more.
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Source: Henzodaily.ng