Nigeria’s electricity distribution companies collectively generated about N3.95 trillion in revenue between 2019 and the first quarter of 2024.

This was disclosed through NBS data from the Nigerian Electricity Regulatory Commission.

Further analysis showed that sales growth has increased over the past five years.

A breakdown of revenues showed that the energy suppliers earned N482.6 billion in 2019, N526.8 billion in 2020, N761.2 billion in 2021, N828.1 billion in 2022, N1.07 billion in 2023 and N291.6 billion in the first quarter of 2024.

Nigerian electricity sector analysts, NESI, attribute this consistent revenue growth to several factors, including continued tariff adjustments to move to cost-reflective pricing, which has allowed Discos to align their revenue with the cost of supplying electricity.

In addition, the National Mass Metering Programme has increased the number of customers metered, reducing estimated billing and improving the accuracy of revenue collection.

NMMP has also helped reduce the technical, commercial and collection losses that previously plagued the sector.

Despite this growth in turnover, the Discos face significant challenges, including high unpaid bills, electricity theft, infrastructure shortages and energy losses.