DisCos generate N509bn amidst multiple grid collapses
Electricity consumers paid a total of N509.84 billion in the fourth quarter of 2024 despite experiencing five national grid collapses within the same period.
The Nigerian Electricity Regulatory Commission (NERC) disclosed in its latest report that there were three instances of total grid collapse and two cases of partial collapse in Q4 2024.
NERC stated that electricity distribution companies (DisCos) generated N509.84 billion in revenue in the last three months of 2024, an increase from the N466.69 billion collected in Q3.
The commission noted that in Q3 2024, DisCos billed consumers a total of N626.02 billion, achieving a 77.44% collection efficiency—a 2.89 percentage point improvement from the previous quarter.
This revenue was collected even as the country recorded five of the 12 grid collapses that occurred throughout 2024.
NERC explained that the national power grid operates within specified stability limits, including voltage (330kV ± 5.0%) and frequency (50Hz ± 0.5%).
Deviation from these thresholds can degrade power quality and, in extreme cases, trigger widespread outages, ranging from partial failures to full system blackouts.
“When electricity demand exceeds supply, the grid frequency drops. Conversely, if supply surpasses demand, frequency rises beyond safe limits.
“In Q4 2024, there were three cases of total grid failure and two partial collapses. The partial failures occurred on 14 October and 5 November, while total collapses took place on 19 October, 7 November, and 11 December,” the report stated.
NERC indicated that the system operator would submit a detailed report on the root causes of these failures, alongside proposed mitigation strategies, to prevent future disruptions.
Despite these issues, two additional partial collapses have already been recorded in Q1 2025, plunging several regions into darkness.
NERC’s report further noted that Eko and Ikeja DisCos recorded the highest collection efficiencies in Q4 2024, achieving 90% and 82.3%, respectively. Conversely, Jos DisCo recorded the lowest efficiency at 49.68%.
A comparative analysis of DisCos’ performances showed that eight DisCos improved their collection efficiencies between Q3 and Q4 2024, with Yola (+13.93 percentage points) and Kano (+9.88 percentage points) showing the most significant gains.
However, three DisCos experienced declines, with Jos (-3.61 percentage points) and Abuja (-3.39 percentage points) recording the sharpest drops.
“In Q4 2024, both billing and collection efficiencies saw improvements of 1.51 and 2.89 percentage points, respectively, compared to Q3. Historical trends suggest that these improvements were driven by reduced energy offtake during the quarter,” the report added.
NERC stressed that the most effective strategies for improving revenue collection and reducing energy losses include accurate customer enumeration and widespread installation of end-user meters.
The commission highlighted its recent enforcement of the Meter Acquisition Fund (MAF) programme, which was launched in Q2 2024 and became effective on 24 June.
“As of December 2024, DisCos have installed over 4,000 Band A meters under the MAF scheme. Alongside MAF, DisCos are expected to continue using other metering frameworks under NERC’s MAP and NMMP regulations to expand end-user metering coverage,” the report concluded.
