Report has it that 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.
Last week, the Market Operator, a division of the Transmission Company of Nigeria, disconnected the Kano Electricity Distribution Company, Kaduna Electric and APLE Electric from the national grid for failing to settle their debts, thereby throwing customers in their franchise areas into darkness for days.
Following the intervention of the Minister of Power, Mr Abubakar Aliyu, the affected Discos were, however, reconnected on Monday, May 1, 2023 and were given 60 days to settle their outstanding invoices.
There are also reports 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.
Reacting to the development, the Director, Research and Advocacy, Association of Nigerian Electricity Distributors, Sunday Oduntan, urged customers to pay up their bills, stressing that the debts were affecting the viability of the power sector.
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