In 2023, Nigeria’s 11 electricity distribution companies (DisCos) collectively recorded a notable surge in revenue, generating N1.065 trillion, which marks a 28.7% increase from the previous year’s total of N828.09 billion. Despite this financial improvement, the country’s power supply saw limited progress, raising concerns over the efficiency and quality of electricity distribution.
According to data from the National Bureau of Statistics (NBS), the total electricity distributed in 2023 reached 23,925.51 gigawatt-hours (GWh), an increase from 21,817 GWh in 2022. However, this overall growth in electricity distribution was not uniform across all DisCos. Some companies, despite seeing higher revenue, delivered less power to their customers, prompting discussions about the performance of these entities and the push from state governments to take over the operations of certain DisCos to improve service delivery.
Among the most affected, the Kaduna DisCo experienced a significant decline in power supply, dropping from 1,415 GWh in 2022 to just 1,099.95 GWh in 2023, a decrease of 28.6%. Similarly, the Benin DisCo saw a 2.5% reduction in power supply, while the Kano DisCo’s supply dropped by 1.4%. Other DisCos, such as Enugu DisCo, saw only a marginal decline of 0.3%.
In terms of revenue, Ikeja DisCo remained the top performer, generating N218.61 billion in 2023—an increase of 31.7% over the previous year. Eko DisCo followed closely with N177.59 billion in revenue, reflecting a 42.3% rise from 2022. Abuja DisCo and Ibadan DisCo also posted impressive revenue gains, reaching N167.38 billion and N111.29 billion, respectively, up by 33.9% and 16.4% compared to the prior year. Collectively, these four leading DisCos generated N674.89 billion, or 63.3% of the total revenue across the sector.
Other DisCos like Benin, Enugu, Port Harcourt, and Kano also saw significant increases in their revenues. Benin DisCo, for instance, earned N84.62 billion in 2023, up from N68.27 billion the previous year. Enugu DisCo posted N82.46 billion, a rise from N70.74 billion, while Port Harcourt DisCo’s revenue climbed to N74.66 billion from N56.96 billion. Kano DisCo’s revenue also grew to N55.24 billion, compared to N47.86 billion in 2022.
However, not all DisCos saw the same level of financial improvement. For example, Kaduna DisCo’s revenue rose slightly to N32.35 billion, up from N28.28 billion, while Yola DisCo experienced a sharp increase, from N13.67 billion in 2022 to N22.31 billion in 2023. Jos DisCo also saw a rise in revenue, reaching N38.97 billion, compared to N30.17 billion in 2022.
The total number of electricity customers across Nigeria stood at 10.15 million by December 2023. Of these, 5.74 million customers were billed through estimation methods, while 4.77 million were metered. The continuing reliance on estimated billing has been a point of concern for many consumers, highlighting the need for more efficient metering systems.
In response to the poor service delivery despite higher revenues, some state governments, particularly in areas served by the Benin DisCo, have proposed taking over operations to reposition the company for better performance. The governments of Edo, Ekiti, Delta, and Ondo states believe that taking control of Benin DisCo will enable them to align the company’s operations with their regional development goals and improve electricity access for residents and businesses alike.
These developments underscore the ongoing challenges in Nigeria’s electricity sector, where financial growth in the distribution companies contrasts with the slow pace of improvement in service quality and power supply stability. As the country continues to struggle with issues of power generation and infrastructure, the need for comprehensive reform remains pressing.
