Power sector in Nigeria boosts of about 14,541MW maximum capacity. The hydro power stations contribute about 1,976 MW (13.5%), renewable energy source Solar contributes about 1,080MW to the national grid (7.42%) and Gas/Thermal plants contribute combined capacities of 11,485MW (78.98%).
At the moment, the country power demand is estimated to be minimum of 25,000MW, however Nigeria currently has about 40% distribution capacity of its generation i.e less than 5,500MW even if the power stations worked at 100% capacity.
In line with the existing policy reforms, Nigeria targets 40,000MW generating capacity by 2020 and will need to spend approximately $10bn per annum on the power sector for the next 10 years to achieve this.
DISCO Collection Efficiency
According to NERC 2022 quarterly report, collection efficiency of Discos improved to 73.33% efficiency. The total revenue collected by all DisCos in
2022/Q4 was ₦243.65 billion out of ₦332.28 billion billed to customers which represents a +1.10 pp increase compared to 2022/Q3 (72.23%).
Relative to 2022/Q3, the total billing and total collections increased: billing increased by ₦40.62 billion (+13.93%) and collections increased by
₦32.98 billion (+15.65%). : In 2022/Q4, out of a total invoice of ₦219.24.
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4th Quarter 2022 DISCO Invoices and Payments
In 2022/Q4, out of a total invoice of ₦219.24 billion issued to NBET by GenCos, NBET only invoiced ₦188.74 billion1to DisCos to accommodate the lack of cost-reflectiveness of tariffs for some.
The ₦30.50 billion not invoiced to DisCos is classified as tariff shortfall, payable to NBET by the Federal
Government for direct payment to the GenCos.
January 2023 DISCO Invoices and Payment
As reported by NBET, Discos’ expected overall payment performance (based on the Minimum Remittance Order by NERC) is 89.22% but overall DisCo payment performance achieved at the time of generating this report is 59.01% representing 66.14% of the MRO requirements.
With the implementation of NERC’s order on Regulatory Net‐Offs, only Yola DisCo satisfied the requirements of the Minimum Remittance Order.
Subsequent Payments are expected from DisCos with outstanding MRO payments.
2022 Last Quarter Power Generation Breakdown
