Eleven power distribution companies have lost over N1.4tn in revenue to the non-payment of electricity bills by Nigerians and consumers in Benin, Niger and Togo.
In Nigeria, many customers supplied electricity by the Discos are issued invoices based on meter bands and the number of hours supplied every 30 days, while others with prepaid meters load prepaid power units onto their meters.
Data from quarterly reports and Discos energy sales records published by the Nigerian Electricity Regulatory Commission from 2019 to 2022 showed that out of the N4.30tn billed customers, only N2.92tn was reimbursed to the companies.
This represents a collection efficiency of over 55 per cent, whereas the Discos are heavily indebted to local banks.
As of August 2022, the Discos were unable to pay the N2tn debt owed the power generation companies.
Findings indicate that neighbouring customers are also indebted to the Nigerian power distribution firms to the tune of N22.55bn for unremitted payment for electricity supplied in five years.
NERC pointed out that the power firms were indebted to the Nigerian Bulk Electricity Trading Company Plc and the power market operator.
Under an international treaty, Nigeria sells electricity to neighbouring countries like Benin Republic, Togo and Niger Republic through Paras-SBEE, Transcorp-SBEE and Mainstream-NIGERLEC, respectively.
