Business
Discos Generate N3.95trn In Five years
Nigeria’s electricity distribution companies collectively generated about N3.95trn revenue between 2019 and the first quarter of 2024.
This is according to data from the National Bureau of Statistics (NBS).
The NBS data revealed an upward trajectory in revenue generation over the past five years, as the power distributors made N482.6billion in 2019, N526.8billion in 2020, N761.2billion in 2021, N828.1billion in 2022, N1.07billion in 2023, and N291.6billion in the first quarter of 2024.
Experts attribute this consistent growth in revenue to several factors, including ongoing tariff adjustments moving towards cost-reflective pricing, which has allowed the Discos to align revenue with the cost of providing electricity.
Also, the National Mass Metering Programme has increased the number of metered customers, reducing estimated billing and improving the accuracy of revenue collection.
The programme has also contributed to reducing Aggregate Technical, Commercial, and Collection losses that have previously plagued the sector.
Also, the enhanced regulatory oversight and the adoption of modern technology in billing and collection have streamlined processes, minimised revenue leakages, and improved collection efficiency.
However, despite this revenue growth, the Discos face significant challenges, including high unpaid bills, electricity theft, infrastructure deficits, and energy losses.
These issues have hindered the Discos’ ability to fully capitalise on the potential of Nigeria’s electricity market.
While reacting to this, the President of the Nigeria Consumer Protection Network, Kunle Olubiyo, questioned the efficiency of the Discos and called for urgent reforms.
According to him, despite the pre-privatisation commitments of the Discos to meter customers and the improved collection and billing efficiency, the power distributors had largely failed to meet their obligations.
“We cannot score the Discos more than five per cent. In terms of complaints resolution, they lack the software to track issues and have failed woefully in conflict resolution”, he said.
Olubiyo further highlighted the inadequacies of the Discos despite significant investments in the firms by the government and the Central Bank of Nigeria aimed at network improvements.
He raised concerns about the implementation of the Federal Government’s National Mass Metering Programme, accusing some meter vendors and Discos of conspiracy.
“Many of the customers listed as metered were not metered. The idea was to attach GPS coordinates to every metered point as a precondition for metering, but this was not done”, the NCPN President stated.
According to Olubiyo, the government’s ongoing intervention, which includes funding the importation and installation of two million meters annually using public funds, raises questions about the essence of privatisation.
He highlighted instances where governance or liquidity issues led to Discos being placed under receivership, with interim management teams appointed by the Bureau of Public Enterprises.
He, however, noted that the effectiveness of these interventions was often undermined by internal politics and job insecurity among Disco management.
He said, “We’ve seen board chairmen abruptly remove MDs in Abuja, Port Harcourt, and several other Discos”.
Olubiyo welcomed the recent empowerment of states to regulate electricity within their jurisdictions under the Electricity Act, describing it as a positive development.
“The migration of electricity from the exclusive to the concurrent list is a good omen”, he said.
He urged the Federal Government to invest its 40 per cent equity in Discos and shift towards resource-driven energy solutions.
Reflecting on the power sector’s performance since privatisation, Olubiyo lamented the stagnation in electricity generation.
He noted that “In 2013, the peak generation on the grid was 5,800 megawatts. As we speak, from 2013 to now, we haven’t even been able to hit 6,000 megawatts of electricity evacuation on the grid”.
Describing the present situation as “a decline or backward growth, progressing in error”, Olubiyo, however, praised the recent licensing of companies such as MTN and Honeywell to engage in Nigeria’s bulk electricity trading or captive generation.
He argued that off-grid generation and independent power plants, etc, were steps in the right direction to stabilise power supply, particularly for industrial areas.
This came as the Transmission Company of Nigeria, a Federal Government-owned firm that transmits electricity from power generation companies to distribution firms, announced that it had been grappling with funding shortfalls.
It said this has stalled the completion of 129 critical projects. TCN’s Managing Director, Abdulaziz Sule, who revealed this recently in Abuja, said the company was facing a funding gap of N637.37bn, out of a total required amount of N1.79tn.
Sule appealed to the National Assembly for intervention to address these challenges and ensure the timely completion of the critical projects. The funding gap, he noted, is delaying project completion and hindering efficient service delivery.
He said the company is dealing with other challenges including inadequate modern tools, port clearance issues, lengthy procurement processes, lack of spinning reserve, delayed donor-funded projects due to unpaid counterpart funding, and recent VAT and levy charges on offshore equipment.
The Minister of State for Industry, Trade and Investment, John Enoh said this at the 8th annual induction and conference of the Chartered Institute of Project Managers of Nigeria (CIPMN).
He explained that abandoned projects continue to lock up public funds that could have been used for infrastructure development, industrial growth, job creation and essential social services.
Represented by the ministry’s Permanent Secretary, Chris Osa Isokpunwu, he said the impact goes beyond financial losses, as incomplete projects affect communities and limit access to important public services
He cited examples of that remain unopened, schools that cannot accommodate students, roads that fail to connect communities and electricity projects that have not delivered their intended benefits.
The Registrar-General and Chief Executive Officer of CIPMN, Henry Ifeanyi Mbadiwe, also identified poor project management as a major challenge affecting development in Nigeria.
He revealed that the institute had developed a project management curriculum for Nigerian universities, which has received approval from the National Universities Commission (NUC). The programme is expected to enable universities to offer project management as a bachelor’s degree.
Mbadiwe further referenced findings by the Presidential Projects Assessment Committee, which identified 11,886 ongoing federal capital projects in 2011, with an estimated financial commitment of ?7.78 trillion.
He noted that inadequate planning, supervision, accountability and implementation were among the factors contributing to the abandonment of projects across the country.
The minister called for stronger project management structures across ministries, departments and agencies to improve planning, monitoring and evaluation.
He added that the Federal Ministry of Industry, Trade and Investment had introduced a 90-day implementation reporting cycle to strengthen transparency and monitor the progress of government programmes.
Ikenga said the company remained committed to Nigeria’s power sector and would continue investing in its operations despite the challenging business environment.
He spoke in Lagos at the third edition of the Shell Power Conference, themed “Powering Nigeria’s Progress: Turning Ambition and Action into Sustainable Impact”.
The Transcorp Power chief said the company would sustain electricity generation, invest in its facilities and deliver value to shareholders.
“Transcorp Power is a long-term player, not a short-term player. This year has been challenging, but what is important is getting power to schools, hospitals and businesses to power progress,” he said.
Ikenga said the company’s focus on operational efficiency and investment had strengthened its contribution to Nigeria’s electricity supply.
He disclosed that since acquiring the Ughelli Power Plant in Delta State in 2013, Transcorp Power had quadrupled its available generation capacity.
He also said the company became the first privatised power generation firm to receive a post-privatisation discharge certificate after fulfilling all its privatisation obligations.
The company’s unaudited results for the nine months ended September 30, 2026, showed a profit before tax of N83.1 billion, while its profit-before-tax margin rose to 31.2 per cent from 29.6 per cent recorded in the corresponding period of 2025.
Its total assets rose to 11.7 per cent amounting to N629.5 billion, while shareholders’ funds grew 8.9 per cent to N199.8 billion. Cash and cash equivalents also rose to N10.3 billion, supported by improved collections.
On the company’s contribution to grid stability, Ikenga said Transcorp Power’s black-start capability enabled it to restart operations without relying on electricity from the national grid.
He explained that the capability allowed the company to support power restoration following grid disturbances, helping to restore electricity supply to homes, businesses and industries.
Ikenga noted that Nigeria had an installed electricity generation capacity of about 13,000 megawatts, with an estimated potential of 50 gigawatts, adding that realising the potential would require effective coordination across the entire value chain.
“Everything in the value chain has to work,” he said.
He called for stronger collaboration among federal and state governments, regulators and private-sector operators, alongside increased private investment, to build a sustainable electricity market.
This was contained in a statement issued on Thursday by his Senior Special Assistant on Communications and Press Secretary, Maryann Duke.
The statement said Oyedele pointed to “improved digital systems, including electronic invoicing, as a key driver behind a record of N33tn in government revenue collected between January and October 2026.”
The minister said the performance demonstrated the potential of technology to improve revenue administration, strengthen compliance and increase efficiency across government institutions.
Speaking on the theme, ‘Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,’ Oyedele warned that Nigeria risked losing substantial economic opportunities if it continued to depend heavily on foreign digital infrastructure.
Citing Nigerian Communications Commission figures, he disclosed that the country recorded more than 157 million active internet subscriptions as of May 2026.
He explained that these connections generated significant volumes of information through financial transactions, healthcare, education and taxation.
However, citing estimates from the Nigeria Data Protection Commission, Oyedele said as much as 90 per cent of the country’s data was hosted abroad.
According to him, the situation has implications for foreign exchange expenditure, employment opportunities, technological skills and Nigeria’s control over information generated by its citizens.
He compared the country’s reliance on foreign digital infrastructure with its historical dependence on imported refined petroleum products, warning against a situation where Nigerian data would be processed abroad and the resulting services sold back to domestic users.
The minister consequently advocated greater investment in local data infrastructure, technical expertise, cybersecurity and predictable regulations to enable Nigerian businesses to capture more value from the digital economy.
He clarified that digital sovereignty should not translate into technological isolation but should strengthen Nigeria’s capacity to participate competitively in international markets.
Addressing graduating students, Oyedele urged young Nigerians to become developers of technological solutions rather than remain primarily consumers of products created elsewhere.
He identified artificial intelligence as both a disruptive force and an opportunity for innovation, advising graduates to acquire relevant digital skills alongside critical thinking, creativity, sound judgement and integrity.
The minister also cautioned against irresponsible online behaviour, explaining that digital footprints increasingly influence employment prospects, commercial relationships and professional credibility.
Oyedele outlined five priorities for graduates, including continuous learning, value creation, integrity, responsible digital citizenship and active participation in national development.
“Your degree is evidence of what you have learned. Your competence will demonstrate what you can do. Your character will reveal who you truly are,” he told the graduating students.
-
Politics2 days agoLG CITY BOY COORDINATOR HAILS WIKE’S SUPPORT FOR ONYESOH, TINUBU
-
Politics2 days ago
DIRI INAUGURATES APC CAMPAIGN COUNCIL, SETS MILLION VOTES TARGET FOR TINUBU
-
Politics2 days agoNDC Candidate Urges Oborevwori To Probe Asaba Political Violence
-
Rivers5 days ago
NUJ Set To Attend UNIPORT’s 217th Inaugural Lecture
-
News2 days agoArmy Recovers X Account After Hack Attempt
-
News5 days agoNJC Suspends Three Judges, Sanctions Eight Others
-
Politics5 days ago
Atiku Kicks-Off 2027 Campaign, Promises To Tackle Nigeria’s Challenges
-
Featured5 days agoAPC Presidential Campaign Storms PH, ‘Morrow