A power analyst, Mureen Ajayi, has said that Nigeria’s power sector has been plagued by persistent challenges, resulting in inadequate electricity supply to meet the country’s growing demand.
In an interview with New Telegraph over the weekend, she noted that despite these challenges, consumers spent a whopping N1.4 trillion on electricity in 2023, while distribution companies (DisCos) struggle with collection inefficiencies, leaving over N385 billion unpaid.
The Nigerian Electricity Regulatory Commission (NERC), in its 2023 report, had said that consumers spent about N1.4 trillion on electricity in 2023, while distribution companies (DisCos) struggle with collection inefficiencies, leaving over N385 billion unpaid.
According to NERC, DisCos collected N1.08 trillion of the N1.46 trillion billed, resulting in a collection efficiency of 73.64 per cent.
This means that for every N100 billed, approximately N26.36 was not recovered, posing a significant challenge to the financial liquidity of the Nigerian Electricity Supply Industry (NESI).
Ajayi said there was the need to have a comprehensive set of solutions to improve the power sector’s efficiency and DisCos’ collection efficiency.
She urged the Federal Government to implement a nationwide metering programme to ensure that all consumers are metered, reducing estimated billing and promoting transparency.
She also said there should be regular energy audits to identify areas of inefficiency and implement measures to reduce energy losses. She said that the national grid should be regularly maintained and upgraded to reduce power outages and improve supply reliability.
According to her, it is needful to conduct a tariff review to ensure that electricity prices reflect the actual cost of production, transmission, and distribution.
Ajayi urged the government to promote the integration of renewable energy sources, such as solar and wind power, into the grid to reduce dependence on fossil fuels. She added that it is imperative to upgrade the transmission infrastructure to improve the efficiency and reliability of power transmission.
“There is the need to expand the distribution network to reach more consumers, particularly in rural areas; implement smart grid technologies to improve the efficiency and reliability of the grid and increase generation capacity through the development of new power plants, including renewable energy sources.
“It is also important to develop new transmission and distribution infrastructure to support the growth in generation capacity; promote energy efficiency measures, such as the use of energyefficient appliances, to reduce energy consumption as well as promote the adoption of electric vehicles to reduce dependence on fossil fuels and promote sustainable transportation.
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