Electricity revenue dropped in Q1 2024 despite Band A tariff hike – NBS

Key Points

1. • Total revenue collected by DISCOs was N291.62 billion in Q1 2024 signalling a decline in electricity revenue.
   • This represents a slight decline from N294.95 billion in Q4 2023.
   • Total energy billed was 5,769.52 GWh in Q1 2024.
   • This is a decrease from 6,432.22 GWh in Q4 2023.
   • Year-on-year, electricity supply fell by 1.41% from 5,851.87 GWh in Q1 2023.
   • Total number of electricity customers reached 12.33 million in Q1 2024.
   • This marks a 1.78% increase from 12.12 million in Q4 2023.
   • Year-on-year growth of 9.47% from 11.27 million in Q1 2023.
   • Metered customers increased to 5.91 million in Q1 2024.
   • This is a 5.38% rise from 5.61 million in Q4 2023 and an 11.26% increase from 5.31 million in Q1 2023.
   • Estimated customers rose to 6.43 million, up 10.22% from 5.83 million in Q4 2023.

The first quarter of 2024 saw a decline in revenue collected by Nigerian electricity distribution companies to N291.62 billion from N294.95 billion in Q4 2023, according to recent data released by the Nigerian Electricity Regulatory Commission and validated by the National Bureau of Statistics.

The decline was despite the electricity tariff hike introduced with the classification of Band A customers on April 3, 2024.

However, on a year-on-year basis, revenue showed a significant increase of 17.91 per cent from N247.33 billion in Q1 2023. This growth indicates improved revenue collection mechanisms and an expanding customer base.

Customer Growth

In Q1 2024, the total number of electricity customers reached 12.33 million, representing a 1.78 per cent increase from 12.12 million in Q4 2023. On a year-on-year basis, there was a remarkable rise of 9.47 per cent from the 11.27 million customers recorded in Q1 2023. This growth underscores the continued efforts to enhance electricity access nationwide.

Also read: Band A meets Plan B: Nigerian offices, homes devise strategies to manage higher electricity costs

The number of metered customers also saw a positive trend, rising to 5.91 million in Q1 2024, an increase of 5.38 per cent from 5.61 million in Q4 2023.

Compared to Q1 2023, the number of metered customers grew by 11.26 per cent from 5.31 million.

Conversely, the number of estimated customers (those not metered) increased by 10.22 per cent from 5.83 million in Q4 2023 to 6.43 million in Q1 2024. On a year-on-year basis, this group grew by 7.88 per cent from 5.96 million in Q1 2023.

Electricity Supply

Electricity supply faced a slight decline, with total energy billed at 5,769.52 GWh in Q1 2024, compared to 6,432.22 GWh in Q4 2023. This represents a quarterly decrease but a 1.41% decline year-on-year from 5,851.87 GWh in Q1 2023. This decrease may be attributed to various operational challenges within the sector.

DISCOs Performance Breakdown

The performance of individual DISCOs varied significantly across the country:

• Abuja (AEDC): With 1,456,755 customers and 846 GWh of energy supplied, AEDC collected N48.60 billion in revenue.
• Benin (BEDC): BEDC served 1,360,260 customers with 489 GWh supplied, generating N22.46 billion.
• Eko (EKEDC): EKEDC reported 692,570 customers, 849 GWh supplied, and N48.74 billion in revenue.
• Enugu (EEDC): EEDC had 1,389,352 customers, 444 GWh supplied, and N21.24 billion collected.
• Ibadan (IBEDC): With the highest number of customers at 2,479,009 and 717 GWh supplied, IBEDC collected N30.35 billion.
• Ikeja (IEDC): IEDC had 1,139,083 customers, 908 GWh supplied, and the highest revenue at N57.88 billion.
• Jos (JEDC): JEDC supplied 301 GWh to 744,158 customers, collecting N13.29 billion.
• Kaduna (KDEDC): KDEDC served 845,540 customers with 252 GWh supplied, collecting N9.60 billion.
• Kano (KEDC): KEDC had 676,859 customers, 330 GWh supplied, and N13.62 billion collected.
• Port Harcourt (PEDC): PEDC supplied 451 GWh to 732,865 customers, generating N20.39 billion.
• Yola (YEDC): YEDC served 817,548 customers, supplied 183 GWh, and collected N5.46 billion.

Analysis and Implications

The report highlights both progress and challenges in Nigeria’s electricity sector. The increase in customer numbers signifies a positive trend towards greater electricity access and financial stability. However, the decline in electricity supply and revenue points to persistent operational issues that need addressing.

The substantial growth in estimated customers also suggests a pressing need for enhanced metering infrastructure to ensure accurate billing and reduce revenue losses.

The disparity in performance among DISCOs further indicates the need for tailored interventions to address regional challenges.

Overall, the Q1 2024 report underscores the dynamic nature of Nigeria’s electricity sector, with notable strides in customer growth and revenue, but also highlights areas requiring strategic focus to achieve sustainable improvements.

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