The Nation Newspaper

Tag: DISCOS

  • Stay the course

    Stay the course

    • The govt is right on free meters; this should have been the duty of the DisCos ab initio

    Nigerians who are conversant with the operations in the country’s power sector, particularly as they affect the electricity distribution companies (FisCos) would have seen their cold reaction coming, when the Minister of Power, Adebayo Adelabu, announced last week that prepaid meters must be free for all categories of customers.

    Adelabu said neither the DisCos nor the meter installers had any right to collect a dime for the installation of the meters and that anyone caught extorting power consumers would be prosecuted.

    The minister issued the warning on Thursday during an on-site inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.

    Adelabu said the meters were procured under the World Bank–funded Distribution Sector Recovery Programme.

    “I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer. It is an illegality.

    “It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime. It has to be installed free of charge so that billings and collections will improve for the sector,” Adelabu said.

    Ideally, the minister is right. It is not the duty of electricity consumers to buy cable or any item before their meters could be installed. As a matter of fact, this would appear to be a post-privatisation practice. It was not like that in the past. Unfortunately, all this changed with the warped privatisation of the sector in November 2013.

    The exercise was not thorough as it only gave the entities out to cronies of the government of the day, with neither the financial muscle nor the technical acumen.

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    The effect soon became glaring. From day one they had to rely on government crutches to function. Despite their being private entities, the Federal Government continued to pump billions into their operations.

    That is the way things have been such that today, the entities, particularly the DisCos, can hardly stand on their own. The support or assistance that they have been getting from successive governments has given them the sense of entitlement to things they ordinarily should have shown evidence of their capacity to handle if the privatisation had been better handled.

    We are here talking about meters.

    At the time of privatisation, the metering gap was about eight million consumers. Today, it stands at about five million. And this is despite efforts by the Federal Government to help ease the burden, including the ongoing Meter Asset Provider (MAP) scheme.

    Part of the reason we still have this huge number of electricity consumers unmetered is because the DisCos are not too keen on having them metered. They prefer the anachronistic estimated billing which allows them to extort consumers by making them pay for power that they did not consume.

    Now that the DisCos are, at least going by a report in ‘The Punch’, are asking who bears the cost of installation of the meters, it simply tells us the extent they have been used to being pampered by the government.

    Meters are important tools that the DisCos ought to have brought to the table ab initio if they truly wanted to earn their revenue. They were supposed not just to bring the meters but also install them, free of charge.

    Now, they are saying installation of meters was taken from them when Mr Babatunde Fashola was Minister of Power. Of course, Fashola must have done that for a good reason, apparently because he noticed the lack of enthusiasm on the part of the DisCos to have their customers metered.

    If a government is now saying they should do their job as appropriate, the DisCos should not complain. Players of note should not be debating a matter like this. Indeed, we cannot understand this business model of a producer not able to collect its revenue. Such a producer cannot be said to be in business. If the DisCos must invest a little more to get their deserved income, why not?

    The government is on the right path. It should stay the course. Indeed, there should be timelines and sanctions for non-compliance with government directives on this matter. If the power minister has to engage the DisCos to see if they have any genuine reason as to why they cannot cope, that should be done.

    Meanwhile, what has happened to local production of meters? We are not helping our economy if we import the quantum of meters that we need. The Federal Government must do all it takes to get the local meter producers in business.

    On the matter at hand, both the DisCos and the government must be challenged. The fight at hand is a strategy battle that we must win once and for all. The DisCos should not continue to keep all of us down with threats and cheap blackmail.

  • Strategies for power, energy and security

    Strategies for power, energy and security

    • By Engr Bright Mills

    Sir: Nigeria is blessed with abundant energy resources: oil, gas, sunshine and human capacity yet the average citizen lives with darkness, high fuel prices, and growing insecurity. This contradiction raises a painful question: Why does a resource-rich nation struggle to meet its most basic needs?

    When private electricity Distribution Companies (Discos) took over from the Power Holdings Company of Nigeria (PHCN), Nigerians were promised efficiency, improved supply, and expanded generation. Instead, the situation has worsened. Electricity has become more expensive, more unreliable, and increasingly beyond the reach of ordinary Nigerians.

    At the time of privatization, expectations were high that power generation would move far beyond the long-standing 5,000 megawatts. Years later, this goal remains largely unmet. What has grown instead are estimated bills and tariffs that do not reflect actual consumption, further burdening households and small businesses already struggling in a tough economy.

    Electricity infrastructure handed over to the Discos was built with taxpayers’ money, yet consumers continue to pay for inefficiency; worse still, most Discos lack the financial and technical capacity to provide basic necessities such as free prepaid meters for customers.

    Against this backdrop, there is a strong case for rethinking Nigeria’s power sector structure. One practical solution is for the federal government to revive NEPA as NEPA Plc, in partnership with global electricity giants such as Siemens and ABB. These companies possess the technology, experience, and capital needed to modernize Nigeria’s power grid and expand generation sustainably.

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    Under this model, Discos that wish to operate should be required to build and maintain their own power infrastructure, rather than relying on assets that belong to Nigerian taxpayers. A stronger, restructured NEPA Plc would also have the capacity to provide free prepaid meters, eliminating estimated billing and restoring trust between consumers and power providers.

    Additionally, government should liberalize the importation of prepaid meters. Allowing consumers to purchase meters independently will encourage competition, drive prices down, and protect citizens from exploitation.

    Nigeria’s oil and gas sector also needs bold incentives that prioritize local production and affordability. The federal government should offer a 40 percent discount on gas and crude oil prices priced in Naira to investors willing to build refineries and gas-powered plants in Nigeria.

    Such a policy would attract more players into the sector, reduce reliance on imports, lower fuel prices, and ultimately bring down the cost of goods and services. Affordable energy is not just an economic issue, it is a direct pathway to reducing poverty and improving the quality of life for millions of Nigerians.

    No discussion about development is complete without addressing security. The rising insecurity across the country has shown clearly that the current centralized policing structure is overstretched and ineffective. The implementation of state police has therefore become a matter of urgency.

    Governors are expected to secure their states, yet they lack the authority and operational control to do so effectively. Decisions are dictated from the centre, a situation that contradicts democratic principles and weakens local response to security challenges.

    While the current president remains in office, decisive action must be taken. This is the time to act to make haste while the sun shines so that Nigeria does not end up “looking for a black goat in the night.”

    Nigeria does not lack ideas, resources, or capable hands. What is required now is political will, people-focused policies, and the courage to break away from failed systems. Power, fuel, and security are not luxuries; they are foundations of national progress. Until they work for the ordinary Nigerian, true development will remain out of reach.

    •Engr Bright Mills,

    <brightmills@yahoo.com>

  • NISO sends out 60MW to 11 DisCos

    NISO sends out 60MW to 11 DisCos

    • …Abuja DisCo and nine others get 0MW

    The Nigerian Independent System Operator (NISO) sent 60MW to the 11 electricity Distribution Companies (DisCos) at 1.45 pm on Friday.

    The Nation observed from the Load Distribution Profile of the NISO website that the energy was distributed as follows: Abuja DisCo 0MW, Benin DisCo 10MW, Eko DisCo 0MW, Enugu DisCo 0MW, Ibadan DisCo 50MW, Ikeja DisCo 0MW, Jos DisCo 0MW, Kaduna DisCo 0MW, Kano DisCo 0MW, Port Harcourt DisCo 0MW, and Yola DisCo 0MW.

    The NISO also said electricity generation dipped to 20.40MW at 13:00 hours from the 3,996.93MW recorded at 12:00 hours.

  • DisCos collected N210b revenue in October 2025

    DisCos collected N210b revenue in October 2025

    The Nigerian Electricity Regulatory Commission (NERC) on Monday said the Distribution Companies 12 DisCos collected N210 billion revenue in October 2025.

    This was contained in its document titled: “Commercial Performance of Distribution Companies (DisCos).”

    In the period under review, NERC’s Fact sheet for October listed 12 DisCos, which include: Aba, Abuja, Benin, Enugu, Eko, Ibadan, Ikeja, Kaduna, Kano, Port Harcourt, and Yola.

    The DisCos, said NERC, could not collect N45.19billion revenue out of the N255.19bills they issued.

    The total energy that was sent to the DisCos cost N303.85 billion, according to the factsheet, which also noted that the average tariff per kwh was N116.25, while only N95.89 kwh was actually collected.

    This is an indication of N20.36kwh subsidy.

    Of the 303.85billion energy sent to the DisCos, N48.66billion was not billed, being the subsidy.

    In the month under review, the Federal Government absorbed electricity of N48.66 billion.

    NERC also disclosed that in October 2025, the Discos recorded 83.99 per cent billing efficiency, 82.66 per cent collection efficiency, and 82.49 per cent recovery efficiency.

  • NERC to withhold DisCos opex over meter refund

    NERC to withhold DisCos opex over meter refund

    The Nigerian Electricity Regulatory Commission (NERC) has vowed to withhold the Operational Expenditure (opex) of the Distribution Companies (DisCos) at the national wholesale level.

    The threat came on the heels of the report that some DisCos have only attained two per cent of performance on Meter Asset Provider (MAP) refund to customers.

    According to NERC on its X handle, the commission’s Vice Chairman, Dr. Musiliu Oseni said the breach will be met with the necessary penalties.

    NERC said: “Reacting to a report that some DisCos have only achieved two per cent performance on MAP meter refunds to customers, NERC Vice Chairman Dr. Musiliu Oseni issued a stern warning regarding financial penalties: “This would be met with necessary sanctions.”

    “Dr. Oseni proposed a direct enforcement mechanism utilising the wholesale market structure: “You still have your Operational Expenditure (OPEX) at the national wholesale market level.

    “If you refuse to refund customers, that money can be withheld from your OPEX until you have done so.” He insisted that strict timelines be issued immediately to ensure compliance.”

    Recall that the MAP refunds to customers involve repaying the cost of meters paid upfront by electricity customers through energy credits credited by DisCos.

    NERC oversights the refund system under the MAP and National Mass Metering Program Regulations (NERC-R-113-2021).

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    The Customers had paid upfront for meters since 2018 under the MAP framework that never received the meters.

    They are now entitled to refunds paid in energy credits, with the schedule set by NERC, taking into account the financial capacity of the Distribution Licensee.

    The refund process means that customers do not get a direct cash refund but rather receive the value of the meter cost back as energy credits on their electricity bills over time.

    The repayment under MAP commenced on April 1, 2023.

  • DisCos collected N196.26b in September, says NERC

    DisCos collected N196.26b in September, says NERC

    The Nigerian Electricity Regulatory Commission (NERC) yesterday said the 12 electricity Distribution Companies (DisCos) collected N192.26 billion in September 2025 out of the N241.54 billion total energy bills issued in the period under review.

    It was an indication that the DisCos could not collect N49.28 billion of the bills.

    This was contained in the Commercial Performance of Nigeria’s Distribution Companies in September 2025 factsheet.

    The performance factsheet which was in the commission’s X handle, noted that in the month under review, N279.45 billion total energy was received by the Discos.

    NERC said while 86.43 per cent billing efficiency was recorded in September, it was up by 2.58 per cent from the previous month.

     According to him, “Energy Billed & Billing Efficiency ₦279.45bn total energy received ₦241.54bn total energy billed Billing efficiency: 86.43% (2.58% from August) Revenue Collection & Collection Efficiency ₦241.54bn total billings ₦196.26bn revenue collected (2.69%) Collection efficiency: 81.25% (1.18%).”

    On Revenue Recovery Performance, NERC said ₦116.34/kWh was the allowed average tariff while ₦97.09/kWh was the actual average collection.

    The factsheet added that there was 83.45 per cent recovery efficiency, with (3.67 per cent) rise over the August record.

    NERC said DisCo Eko, Abuja, and Ikeja remained strong performers across billing, collections, and recovery efficiency. 

    Aba, according to the factsheet, achieved a 102.85 per cent billing efficiency, reflecting improved energy optimisation and legacy recovery. Benin, Port Harcourt, and Kano posted moderate efficiency levels, while Jos, Kaduna, and Yola continued to trail and show room for improvement. 

    NERC explained that the “figures give a clear picture of how effectively DisCos are billing, collecting, and recovering revenue, key indicators for strengthening liquidity and improving service delivery across the Nigerian Electricity Supply Industry (NESI).”

  • ‘DisCos installed 70,888 new meters in August’

    ‘DisCos installed 70,888 new meters in August’

    Electricity distribution companies (DisCos) installed 70,888 new meters in August 2025,  Nigerian Electricity Regulatory Commission (NERC) has said

    This was disclosed in its Metering Factsheet for July and August 2025, released yesterday.

    The fact sheet disclosed that the Nigerian Electricity Supply Industry (NESI) recorded marginal growth in the number of active electricity customers to 11.96 million in August 2025 from 11.89 million meters in July 2025.

    NERC said of the numbers, 6.58 million customers were metered, resulting in a metering rate of 55.01 per cent, up slightly from 54.71 per cent in July.

    The top performing DisCos, according to the Factsheet, include

    Rating DisCos performance, NERC said Eko: 84.25 per cent, Ikeja: 84.83 per cent, and Abuja: 73.92 per cent, respectively top the list.

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    These figures highlight gradual progress inclosing Nigeria’s metering gap and improving transparency and billing accuracy for electricity consumers.

    Recall that NERC recently approved the sum of N28 billion for the DisCos, to procure and install meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.

    The Commission explained that the funds shall be allocated in proportion to the respective contributions of the DisCos, and are intended to meter all outstanding unmetered Band A customers while also expediting the closure of the metering gap for customers currently classified under Tariff Band B.

    According  to the factsheet, due to the inability of the DisCos to secure financing, whether through debt or additional equity, for the acquisition and deployment of end-use meters and other critical capital investments that it created the Meter Acquisition Fund (MAF).

  • DisCos installed 70,888 new meters in August, says NERC

    DisCos installed 70,888 new meters in August, says NERC

    The Electricity Distribution Companies (DisCos) installed 70,888 new meters in August 2025, according to the Nigerian Electricity Regulatory Commission (NERC).

    This was contained in its Metering Factsheet for July and August 2025, released yesterday.

    The fact sheet disclosed that the Nigerian Electricity Supply Industry (NESI) recorded marginal growth in the number of active electricity customers to 11.96 million in August 2025 from 11.89 million meters in July 2025.

    NERC said of the numbers, 6.58 million customers were metered, resulting in a metering rate of 55.01 per cent, up slightly from 54.71 per cent in July.

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    The top performing DisCos, according to the Factsheet, include Rating DisCos performance, NERC said Eko: 84.25 per cent, Ikeja: 84.83 per cent, and Abuja: 73.92 per cent, respectively top the list.
    These figures highlight gradual progress inclosing Nigeria’s metering gap and improving transparency and billing accuracy for electricity consumers.

    NERC recently approved the sum of N28 billion for the DisCos, to procure and install meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.

    The Commission explained that the funds shall be allocated in proportion to the respective contributions of the DisCos, and are intended to meter all outstanding unmetered Band A customers while also expediting the closure of the metering gap for customers currently classified under Tariff Band B.

    According to the factsheet, due to the inability of the DisCos to secure financing, whether through debt or additional equity, for the acquisition and deployment of end-use meters and other critical capital investments that it created the Meter Acquisition Fund (MAF).

  • Energy supply to 11 DisCos soars to 4,871MW

    Energy supply to 11 DisCos soars to 4,871MW

    The Nigerian Independent System Operator (NISO) has said energy sent out to the 11 electricity Distribution Companies ( DisCos) rose to 4,871MW on Monday 27th October, 2025 from 4,783MW of Sunday, 26th October, 2025.

    This was made known in the Grid Performance Dashboard of the NISO.

    Similarly, the document said total energy generated rose to 4,923MW on 27th October, 2025 from 4,783MW of 26th October, 2025.

    Meanwhile, as at 16:00 hour on 28th October, 2025, NISO sent out 4,783MW to the 11 DisCos.

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    According to the load distribution profile of the NISO, 732MW was allocated to Abuja DisCo while 390MW was sent to Benin DisCo.

    The document said Eko DisCo got 613MW as Enugu DisCo got 372MW and Ibadan DisCo received 573MW.

    NISO added that Ikeja DisCo got 732MW, Jos DisCo 270MW as Kaduna received 309MW.
    Kano, said the document, received 321MW, Port Harcourt DisCo got 339MW as Yola DisCo got 139MW.

    At 16:00 hours on 28th October, 2025 energy generated by 16 plants was N3,141.58MW.

  • Discos to face fresh hurdle ahead of licence renewal

    Discos to face fresh hurdle ahead of licence renewal

    A new major policy requiring electricity Distribution Companies (DisCos) to meet a minimum capital adequacy requirement to qualify for the renewal of their operating licenses is underway. The policy is aimed at addressing the capital adequacy requirement to strengthen the financial health and liquidity position of the utilities.

    The Minister of Power, Chief Adebayo Adelabu, made this known yesterday at the  opening session of the Nigeria Energy Week 2025 which kicked off in Lagos at the Landmark Event Centre. The summit, organised by Informa Markets, has as its theme: “Powering Nigeria through Investment, Innovation, and Partnership.”

    According to Adelabu, the sector continues to face challenges of under-capitalisation among several Distribution Companies (DisCos) and a severe debt burden.

    “As the tenure of their operational licenses approaches renewal, the government intends to introduce a minimum capital adequacy requirement as part of the license renewal process, to strengthen the financial health and liquidity position of the utilities,” Adelabu said.

    The minister also disclosed that prior to the coming of the present administration, Nigerians spent about N15 trillion on diesel and fuel to power their generators in a year because of unreliable public power services.

    He, however, said that given the reforms of the President Bola Tinubu’s administration the narrative has changed as he claimed that there is better power provision currently.

    Adelabu’s disclosure corroborates with the report of the National Bureau of Statistics which stated that the cost of petrol imports rose by 105.3 per cent to N15.42tr in 2024 from the N7.51tr recorded in 2023.

    He therefore charged the private investors to invest more in the nation’s power sector, adding that the federal government alone does not have the capacity to fund all the investment needed to make very efficient.

    The minister also used the occasion to give updates on critical infrastructure projects. He confirmed that contracts for the Presidential Power Initiative (PPI) Phase One have been signed, with the aim of adding 7,000MW of operational capacity to the grid. He also revealed that generation capacity has been sustained at an average of approximately 5,300MW in 2024, up from 4,200MW in 2023.

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    “In parallel to the grid expansion, generation capacity is being expanded through the rehabilitation of existing NIPP plants to unlock about 345MW, alongside the successful integration of the 700MW Zungeru Hydropower Plant into the grid.

    “Collectively, these interventions have helped sustain an average generation capacity of approximately 5,300MW in 2024 up from 4,200MW recorded in 2023”.

    The Minister disclosed further that the government has operationalized the Presidential Metering Initiative, with N700 billion already secured to deploy 1.1 million meters by the end of 2025.

    He also noted that the unbundling of the Transmission Company of Nigeria (TCN) into two organisations: the Nigerian Independent System Operator (NISO), which manages the operation of Nigeria’s electricity grid and coordinates the electricity market, and the Transmission Service Provider (TSP), which owns, maintains, and expands the physical transmission infrastructure marks a long-awaited and critical structural reform in the power sector.

    Adelabu direct appealed for investment, emphasising that Nigeria’s power sector remains open and ready for business more than ever before. He pointed to the over 10 GW of stranded generation capacity as a critical opportunity, assuring stakeholders that market fundamentals are improving, policy environment is clear, and the national leadership is committed.

    “As we commence today’s forum, let me once again emphasise to our investors, financiers, and innovators that Nigeria’s power sector remains open and ready for business more than ever before. We recognize that achieving the scale of investment required to transform the sector requires greater private sector participation across the entire value chain, particularly in the transmission segment.

    “A useful reference is South Africa’s ambitious $25 billion transmission grid expansion initiative, which seeks private developers to deliver 14,000 kilometers of new power lines and connect over 59 GW of new capacity within the next 14 years. This is remarkable when compared to Nigeria’s Presidential Power Initiative (the Siemens project) valued at $2.3 billion.

    “In Nigeria today, we have over 10 GW of stranded generation capacity. Energy that could power industries, create jobs, and even support electricity exports to our neighbouring countries through the regional power pool. We are therefore open to strategic partnerships to mobilize the necessary investments and unlock this potential. Our market fundamentals are improving, our policy environment is clear, and the national leadership is committed to creating the enabling conditions for long-term investment and innovation,” Adelabu said.

    He also spoke of the comprehensive reform agenda for the sector since 2023, describing it as a multi-pronged approach to reposition the Nigerian power sector for sustainability, efficiency and growth.

    He said: “This approach spans critical pillars which include legislation, policy reforms, infrastructure development, energy transition and access expansion, and local content and capacity development with each designed to address structural challenges, unlock private capital, and enhance service delivery across the electricity value chain.”

    The Minister highlighted the Electricity Act 2023 as a foundational milestone, which has already granted regulatory autonomy to 15 states. On the policy front, he revealed that the first comprehensive, sector-wide policy in nearly two decades, the Integrated National Electricity Policy, has been approved.

    He said: “This represents a clear shift towards a liberalized and investment-friendly electricity market. Since its passage, 15 states have received regulatory autonomy to establish subnational electricity markets with one fully operationalized. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market. In this regard, we believe the active involvement of state governments, particularly in the off-grid segment is critical, given the series of roundtable engagements held with governors by the Rural Electrification Agency (REA), as well as the ongoing efforts to closely track the Distribution Company (DisCo) performance within their respective jurisdictions.

    On stabilisation of the market and sector commercialization, he said the government is deepening power sector commercialization to strengthen revenue, liquidity, and investor confidence. “Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, and industry revenue has increased by 70 percent to N1.7 trillion in 2024 compared to previous year and the revenue is expected to exceed N2 trillion for 2025.”

    To stabilise the market, he revealed: “Mr. President has approved a N4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and viable industry,” the minister concluded.