Access to power supply continues to be a herculean challenge for millions of Nigerians. This is not helped by the inability of distribution companies (DisCos) to render effective service after the privatisation of the sector; BENJAMIN UMUTEME writes.
In what has become a killjoy for many Nigerians, the privatisation of the power sector has thrown up more challenges than it was expected to solve.
Looking at the 14 years of change of ownership of power plants, many have wondered whether the federal government acted in the best interest of Nigerians by handing over the sector to the private sector that have gone ahead to make an already bad situation worse.
From consumers still being subjected to estimated billings to having to procure for themselves transformers, and the vexed irregular supply of electricity, many Nigerians have likened the power situation to one chance. Yet, millions are helpless because alternatives are beyond their reach, so they have to continue to silently bear the burden of paying for darkness.
Huge profits, poor service
In spite of their inability to provide quality and efficient service, the DisCos continue to smile to bank. A cursory look at the situation in the power sector has seen DisCos act with impunity without regards to the neither regulators nor regulatory guidelines.
While many the DisCos feed fat, their customers are given the short end of the stick home as they hardly feel the service.
In 2024, the Nigerian Electricity Distribution Companies (DisCos) collected approximately ₦1.7 trillion in revenue, which was about 33% short of their total billed amount for the year. Specifically, in Q4 2024 alone, DisCos collected ₦509.84 billion out of ₦658.4 billion billed, achieving a collection efficiency of 77.44%, an improvement from previous quarters.
Data revealed that the main factor behind the revenue rise in 2024 was the combination of higher crude oil production, depreciation of the naira, reduction of fuel subsidies, and efforts to streamline taxes, which enhanced ease of revenue collection.
In the first quarter of 2025, DisCos collected approximately N560 billion as revenue. This represents a 92% increase compared to the N291 billion collected in Q1 2024. This means that DisCos achieved a revenue collection efficiency of around 73.4%. According to industry players, the increase was mainly due to a tariff hike for high-consumption customers and efforts to increase meter penetration nationwide.
In the second quarter, DisCos collected N431.16 billion as revenue representing collection efficiency of 79.31%.
But have the customers also seen an improvement in service delivery by DisCos?
Rather than see improvement in service delivery by DisCos, Nigerians continue to witness worsening power supply with many areas not getting up to eight hours regular power supply. This is coupled with increasing rationing of power supply to many areas.
Nigerians say the continuous hike in electricity tariff by the DisCos had not been justified.
“Before now, we used to experience transformer breakdown every month. So, AEDC officials suggested that the solution will be to ration the electricity, but even that has not produced the much needed succour as many times, even in those two days that is supposed to be our turn, there is not light. At the end of the month, they will bring outrageous bill-for those of us who are on estimated billings.
“So, what is the use of rationing when it fails to address the situation in the first place,” James Amadi, who resides at Jikwoyi, Phase 4, told Blueprint Weekend.
For Adoniyi John, who resides in the popular Umudi Street in Jikwoyi, for many Nigerians, the power situation is like one chance as they are powerless to act.
He said, “In the last two years, our transformers have packed up twice. The first time, AEDC claimed they changed it, but that did not last up to three months, it packed up again. Now, every landlord is contributing N40, 000, so we can buy a new transformer.
“The painful part is that after we buy this transformer, AEDC will take over,” saying it’s their property. If this is not ‘one-chance,’ then what is it?
Dormant regulators