The 11 electricity distribution companies (DisCos) operating in Nigeria paid a total of N137.06 billion to the Transmission Company of Nigeria (TCN) in the first nine months of 2024 for transmission and administrative charges. This figure represents payments made to TCN from January to September 2024, as indicated in quarterly reports by the Nigerian Electricity Regulatory Commission (NERC).
The market operator billed the DisCos a total of N162.7 billion for the electricity delivered to them during this period, an amount ultimately passed on to consumers. However, the DisCos remitted only N137.06 billion, leaving an outstanding balance of N25.64 billion.
Remittance Performance Fluctuates Throughout the Year
First Quarter: DisCos remitted N45.10 billion out of a cumulative invoice of N48.16 billion, translating to a remittance performance of 93.64%. This marked a significant improvement compared to the 69.66% recorded in the fourth quarter of 2023. Ikeja and Ibadan DisCos led with the highest remittance performances at 105.79% and 100.00%, respectively, while Kaduna and Yola DisCos recorded the lowest performances.
Second Quarter: Remittance performance declined to 83.88%, with Yola and Eko DisCos achieving the highest rates. Kaduna DisCo recorded the lowest rate at 21.84%. Nine out of the 11 DisCos experienced a decline in remittance performance, with Jos, Kaduna, and Kano DisCos recording the most significant drops.
Third Quarter: Remittance performance further declined to 76.88%. Ikeja, Abuja, and Yola DisCos recorded the highest performances, while Kaduna DisCo had the lowest performance at 16.94%.
Frequent Grid Collapses Exacerbate Sector Challenges
These remittance figures come amid significant challenges facing the Nigerian electricity sector, including frequent grid collapses. In 2023, the grid collapsed more than 12 times, severely impacting electricity supply and disrupting economic activities across the country. These grid failures highlight the fragility of the nation’s power infrastructure and underscore the urgent need for significant investments in grid modernization and maintenance.
Planned Power Outage in Abuja Due to Transmission Tower Relocation
In a separate development, TCN announced a planned power rationing for customers of the Abuja Electricity Distribution Company (AEDC) in parts of the Federal Capital Territory (FCT) from January 6 to January 20. This power outage is necessitated by the Federal Capital Development Authority’s (FCDA) road dualisation project along the Apo axis, which requires the relocation of eight 132kV and 33kV towers along the Kukwaba/Apo 132kV line.
Impact on Affected Areas
The planned power outage will affect several areas, including Kubwa, Karu, Maraba, Nyanya, Masaka, Keffi, Kukwaba, and Apo Mechanic. Additionally, parts of Lugbe, Trademore Estate, Pyakasa, Sabon Lugbe, Chika, and the Alaita axis will also experience power rationing.
TCN’s Explanation and Assurances
TCN’s General Manager, Public Affairs, Mrs. Ndidi Mbah, explained that the relocation work will necessitate a planned power outage from 9:00 a.m. to 4:00 p.m. daily, allowing for the dismantling and construction of the towers and the restringing of power cables.
She apologized for the inconvenience caused by the planned outage and assured customers that power supply would be restored promptly once the relocation and cable stringing are completed.
“This relocation work will necessitate a planned power outage from January 6 to January 20, between 9:00 a.m. and 4:00 p.m. daily, which is the estimated duration for dismantling and constructing the towers.
“It will also allow for the restringing of power cables to enable the resumption of bulk power supply to the Apo Transmission Substation from Gwagwalada Substation.”
If You Ask Me
The Nigerian electricity sector continues to face significant challenges, including frequent grid collapses and declining remittance performance by DisCos. While DisCos have remitted a substantial amount to TCN, the outstanding balance and declining remittance performance raise concerns about the financial sustainability of the sector.
The planned power outage in Abuja highlights the ongoing infrastructure challenges and the need for proactive planning and communication to minimize disruptions to electricity supply.
