A new report by Vanguard News has revealed a significant surge in revenue for Nigeria’s electricity Distribution Companies (DisCos) over the past eight years. According to the report, revenue collected by DisCos rose by approximately 450% from N218.16 billion in 2013 to a staggering N1.2 trillion in 2020. This increase outpaces growth in electricity supply, which has only grown by 4.8% during the same period.
The report further indicates that plant capacity has fallen by 41% over the past 13 years, since the privatisation of the sector. Despite these challenges, the Minister of Power insists that power supply has improved. Consumers and industry experts have reacted to these findings, with many expressing concerns about the sustainability of this revenue growth and its impact on consumers.
This revelation comes as the Federal Government turns to bonds to address a mounting N6 trillion debt, with power sector debts accounting for a significant portion of this figure. The debt profile of the DisCos currently stands at N700 billion.
This development is significant for Nigerian consumers, who have long struggled with irregular power supply and high electricity costs. The question now is whether this revenue growth will lead to improved service delivery and reduced costs for consumers.
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