Nigeria’s Power Sector Revenue Rises Amid Supply Drop in Q1 2024

The 11 electricity distribution companies (DisCos) in Nigeria generated N291.62 billion in revenue during the first quarter of 2024. This amount represents a slight decline from the N294.95 billion collected in the fourth quarter of 2023.

However, comparing year-on-year figures, revenue rose by 17.91 percent from N247.33 billion in the first quarter of 2023, as reported in the latest Nigeria Electricity Report by the National Bureau of Statistics (NBS).

The report also revealed a notable increase in the number of estimated customers, which grew to 6.43 million in Q1 2024. This reflects a 10.22 percent rise from 5.83 million in Q4 2023.

Year-on-year, the estimated customer base expanded by 7.88 percent, rising from 5.96 million in Q1 2023.

Total customer numbers reached 12.33 million in Q1 2024, up from 12.12 million in Q4 2023, indicating a 1.78 percent increase. Compared to the same quarter in 2023, this marks a 9.47 percent growth from 11.27 million, showing an increased demand for electricity services.

The number of metered customers climbed to 5.91 million in Q1 2024, which is a 5.38 percent increase from the previous quarter’s 5.61 million.

Compared to Q1 2023, this figure represents an 11.26 percent rise from 5.31 million.

Despite these positive trends, the report identified a slight decline in electricity supply. In Q1 2024, the total electricity supplied dropped to 5,769.52 gigawatt hours (GWh), down by 10.31 percent from 6,432.22 GWh in Q4 2023. Year-on-year, electricity supply decreased by 1.41 percent from 5,851.87 GWh in Q1 2023.

This reduction underscores ongoing challenges within the power sector, such as inefficiencies in generation and distribution.

In May, Adebayo Adelabu, the Minister of Power, announced that Nigeria’s power sector achieved an output of 5000MW for the first time in three years.

He also stated that the federal government aims to reach a power output of 6,000MW before the year ends.