Federal Government reveals Discos failed to remit over N200 billion in 2022

Federal Government is saying that power distribution companies failed to remit a total of N208.8bn to the Nigeria Electricity Supply Industry in 2022.

Figures obtained from the latest Fourth Quarter 2022 Report of the Electricity Regulatory Commission, as well as those from the First, Second and Third quarters showed that the Discos never made complete remittances all through the period.

There are about 11 power distribution companies in Nigeria responsible for distributing electricity to consumers in their respective franchise areas of operation.

Some of these areas include Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, and Yola Discos.

The Discos were created in 2013 as part of Nigeria’s power sector reforms aimed at improving the efficiency and reliability of electricity supply across the country.

In the same light, the Nigeria Labour Congress, NLC, Trade Union Congress, TUC, and civil society organisations, CSOs, have rejected the planned 40 per cent hike in electricity tariff, which takes effect on July 1, calling on the government to shelve the increase.

While the NLC described the proposed increase in tariff as insensitive and tough, TUC says it is the height of insensitivity to the suffering of the masses of the country.

On their part, CSOs asked the government to immediately shelve the proposed tariff hike, describing it as unfair and unjustifiable.

It will be recalled that in announcing the tariff increase, Nigerian Electricity Regulatory Commission, had said the current Service Based Tariff, SBT, was bench-marked on an exchange rate of N441/$ and inflation of 16.97 per cent.

It is arguing that since the value of the naira to the dollar now lingers above N700 and current rate of inflation at 22.45 per cent, it was necessary to increase tariff to mitigate operators’ cost of operations.