The revenue generated by electricity distribution companies (Discos) in Nigeria has significantly increased over the first three quarters of 2023, despite facing serious challenges with irregular power supply. According to recent data from the National Bureau of Statistics (NBS), the 11 electricity distribution companies in the country collectively generated a staggering N770.57 billion from January to September 2023. This represents a 29.32% growth compared to the N595.77 billion recorded during the same period in 2022.
Despite the increase in revenue, Nigeria’s power sector continued to suffer from instability, with the national grid experiencing 12 collapses throughout the year. These blackouts severely affected power distribution, leaving households, businesses, and government agencies without a reliable electricity supply.
The Ikeja Electricity Distribution Company (Ikeja Disco) emerged as the highest earner among the 11 Discos, generating N158.86 billion during the nine months, marking a 31.99% rise from the N120.36 billion it reported in 2022. Similarly, the Eko Electricity Distribution Company (Eko Disco) posted a 42.84% revenue increase, generating N127.41 billion compared to N89.20 billion in 2022. Together, these two Discos from Lagos State accounted for 37.2% of the total revenue for the 11 companies in the first nine months of 2023.
Other Discos also reported impressive gains: Abuja Disco raised N121.16 billion, up by 34% from the N90.41 billion of 2022, and Ibadan Disco earned N79.48 billion, which is an 18.3% increase from its 2022 figure of N67.19 billion. Benin Disco saw a rise of 28.56%, reaching N62.24 billion, while Enugu Disco earned N59.14 billion, a rise from the previous year’s N52.72 billion. Other Discos, including Port Harcourt, Kano, and Jos, also posted increases, although the growth varied across regions.
While revenue surged, power supply improvements were less uniform across the country. Six of the 11 Discos reported better power supply during the period, while the rest either saw no change or a decline in the quality of service. The Abuja Disco, for example, managed a 14.7% improvement in its power supply, with total electricity delivered rising from 646 GWh in Q3 2022 to 741 GWh in Q3 2023. Similarly, Yola Disco’s supply increased from 107.40 GWh to 153.58 GWh.
Other Discos, including Ikeja, Eko, Ibadan, and Port Harcourt, also reported improvements in electricity distribution. Ikeja Disco, for instance, increased its supply from 828.63 GWh to 1,121.05 GWh. Eko Disco’s supply grew from 639 GWh to 858 GWh, while Ibadan Disco’s power delivery rose from 595.82 GWh to 674.55 GWh. In Port Harcourt, the supply increased from 405.72 GWh to 432.10 GWh during the same period.
On the downside, Discos covering regions like Kano, Kaduna, and Enugu experienced a reduction in power supply. Kano’s supply fell from 303 GWh to 287.81 GWh, Kaduna’s from 258 GWh to 243.60 GWh, and Enugu’s from 450 GWh to 420 GWh. In contrast, Benin Disco saw no notable change in supply, with its figures moving from 534.24 GWh to 537.36 GWh.
In January 2024, the Federal Government transferred its stake in the 11 distribution companies from the Bureau of Public Enterprises (BPE) to the Ministry of Finance (MOFI), a move aimed at strengthening oversight of the power sector.
