Electricity consumers in Nigeria paid a total of N509.84 billion in the fourth quarter of 2024, even as the national grid experienced a series of disruptions, according to a report by the Nigerian Electricity Regulatory Commission (NERC).
During 2024/Q4, the national grid experienced five significant disruptions, including three total collapses and two partial collapses. The total collapses were recorded on October 19, November 7, and December 11, while partial collapses occurred on October 14 and November 5. These events underscore the grid’s vulnerability when electricity demand outstrips supply or vice versa, leading to deviations from its stability parameters of 330kV ± 5.0% voltage and 50Hz ± 0.5% frequency. The report noted that any deviation can degrade power quality and, in severe cases, result in widespread outages.
Despite these challenges, the Discos (distribution companies) managed to generate N509.84bn in Q4 2024, marking an increase from the N466.69bn recorded in Q3. The improved collection efficiency of 77.44% in Q4, which is +2.89 percentage points higher than in Q3, was attributed to reduced energy offtake. Fewer energy losses allowed Discos to focus on areas with lower billing and collection inefficiencies. Notably, Eko and Ikeja Discos recorded the highest collection efficiencies at 90% and 82.3% respectively, while Jos Disco lagged with the lowest at 49.68%.
Eight Discos showed improvements in collection efficiency compared to Q3, with Yola and Kano DisCos leading the gains at +13.93 and +9.88 percentage points respectively. However, some Discos, including those in Jos and Abuja, experienced declines.
NERC stressed that accurate customer enumeration and the installation of end-use customer meters are among the most effective methods to improve energy accounting and revenue recovery. The commission recalled its Order on the operationalisation of Tranche A of the Meter Acquisition Fund (MAF) from 2024/Q2, which became effective on June 24, directing Discos to install meters for unmetered Band A customers. As of December 2024, more than 4,000 Band A customers have been metered through the MAF scheme. DisCos are also encouraged to utilise additional metering frameworks under the NERC MAP and the NMMP metering regulation (2021).
While Q4 2024 showed improved billing and collection metrics, the report cautions that two partial grid collapses have already occurred in the first quarter of 2025, plunging some consumers into darkness. The system operator is expected to submit a detailed report on the root causes of the Q4 disruptions along with mitigation plans to prevent future recurrences.
This period of fluctuating performance highlights the ongoing challenges and efforts in Nigeria’s power sector, balancing revenue generation with the critical need for grid stability and reliable power supply.
