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HomeBusinessIkeja Electric, AEDC, other DisCos generate N294.95 bln in Q4 2023, 26.96%...

Ikeja Electric, AEDC, other DisCos generate N294.95 bln in Q4 2023, 26.96% higher than previous

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Electricity distribution companies (DisCos) in Nigeria reported a total revenue of N294.95 billion in the fourth quarter (Q4) of 2023, marking a significant increase, according to the latest report by the National Bureau of Statistics (NBS), released on Monday.

The NBS disclosed that the revenue generated by DisCos surged by 26.96 percent compared to the previous year, reaching N232.32 billion in Q4 2022. Notably, revenue collected during the period also rose from N260.16 billion in Q3 2023 to N294.95 billion.

The report further highlighted a positive trend in electricity supply, which stood at 6,432 GWh in Q4 2023, up from 5,732 GWh in the previous quarter. On a year-on-year basis, electricity supply witnessed a 14.64% increase compared to Q4 2022.

Meanwhile, the total number of customers in Q4 2023 rose to 12.12 million, representing a 3.46 percent increase from Q3 2023. Year-on-year, customer numbers saw a notable 9.59 percent rise from Q4 2022.

Metered customers in Q4 2023 reached 5.61 million, indicating a slight decrease in growth rate from the preceding quarter but a significant 9.38% increase compared to Q4 2022.

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Among the DisCos, Ikeja Electricity Distribution Company emerged with the highest revenue of N59.75 million in Q4 2023, despite having the lowest estimated customer base of 217,581.

The report comes amidst challenges in the power sector, with the Minister of Power, Adebayo Adelabu, acknowledging the difficulty of sustaining electricity subsidies.

Nigeria’s debt to generation and gas companies stands at N3 trillion, prompting the government to review its subsidy policies.

In Q3 last year, the federal government allocated N204.59 billion for electricity subsidies and plans to allocate an additional N1.6 trillion in 2024 to ensure affordable power access for citizens.

Additionally, plans are underway to settle outstanding payments to gas companies starting in April, signaling potential improvements in the sector’s financial stability.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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