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House indicts Discos over worsening power condition

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Nigerian House of Representatives
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By Saint Mugaga

The House of Representatives Ad hoc Committee investigating Nigeria’s power sector reforms and expenditure from 2007 to 2024 has accused electricity distribution companies of crippling Nigeria’s power supply system.

The committee said they have some so through years of poor investment, inadequate expansion and failure to meet obligations outlined in their original business plans.

Speaking during a hearing on Wednesday, the Chairman of the committee, Hon. Ibrahim Almustapha Aliyu said most distribution companies had misled the government at the point of acquisition, presenting impressive business plans but failing to deploy the required resources to upgrade substations, transformers and distribution networks more than a decade after privatisation.

He expressed shock that despite claims by the Transmission Company of Nigeria (TCN) that it can wheel up to 8,000 megawatts, the DisCos continue to take only about 4,000 megawatts due to limited infrastructure, a problem he said is self-inflicted.

According to him, the power distribution firms have “Refused to invest, refused to expand and refused franchising options,” thereby creating the conditions for energy theft, meter bypassing, and consumer apathy across the country.

“You have caused this problem because you could not expand from what you inherited,” he said.

“For 13 to 14 years now, if you had made the necessary investments, substations, up-to-date transformers, proper network expansion, there would be no issue. You would uptake more energy, the cost would be lower, and Nigerians would be happy.”

See also  1.13 million Customers Abandon Discos Over Rising Energy Costs

He noted that many consumers resort to illegal connections because they are billed monthly for electricity that is either not supplied or grossly inadequate.

“How do you expect someone whose monthly bill equals his salary to keep paying? People will look for alternatives. And your refusal to invest has contributed to this unholy attitude of bypassing and stealing energy,” he said.

The committee chairman reminded the DisCos that Nigerians enjoyed better supply under the defunct NEPA/NITEL-era systems in some areas and expected significant improvements after private investors took over the assets.

He further challenged the DisCos to reconcile their earlier claims of competence and financial capacity with their current inability to meet tariff obligations, network expansion expectations, and service delivery benchmarks.

Chief Regulatory and Compliance Officer of Kaduna Electric, Dr. Mahmood Abubakar said about 60 per cent of electricity supplied nationwide is subsidised, a situation the company said has continued to weaken investor confidence and limit the ability of distribution companies (DisCos) to make the necessary capital investments.

He said during the hearing that only about 40 per cent of electricity, largely consumed by Band A customers, is cost-reflective, while the rest depends heavily on government subsidy that is often delayed or unpaid.

According to him, the current subsidy structure distorts billing, revenue collection, and the ability of DisCos to expand infrastructure more than a decade after privatisation.

“If we go strictly by the multi-year tariff order, about 60 percent of the energy consumed in Nigeria is subsidised by the government. Only Band A pays the reflective tariff. Even then, we have Band A feeders recording up to 80 per cent energy losses due to theft and bypasses, making full recovery impossible,” he said.

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Abubakar explained that because DisCos cannot recover their full revenue requirement, they cannot secure investments or loans needed to upgrade their networks.

He added that the delay in the payment of subsidies affects the entire value chain, particularly affecting generation companies’ ability to pay for gas, thereby affecting power production.

“The subsidy is not forthcoming as and when due. It comes whenever government decides to pay. That is the reality, and it affects everyone.

“We cannot pay our market invoices fully, the Gencos cannot fulfil firm contracts with gas suppliers, and the whole chain is weakened,” he said.

Energy and Power

1.13 million Customers Abandon Discos Over Rising Energy Costs

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By Isa Abdul, Abuja

Over 1.13 million customers have abandoned various discos due to grievances with power suppliers bordering on unreliable power supply and rising energy costs, findings have shown.

This happened even as the Disco supplied more electricity, generated record revenues and expanded metering in 2025.

The National Bureau of Statistics’ latest report by DISCOs (Q4 2025), compiled from the Nigerian Electricity Regulatory Commission, showed that while operational indicators improved across the sector, the total customer base fell sharply during the year.

According to the report, the number of electricity customers declined from 13.30 million in the fourth quarter of 2024 to 12.16 million in the corresponding period of 2025, representing a year-on-year drop of 8.52 per cent or 1,133,390 customers.

The report stated, “Total customer numbers in Q4 2025 stood at 12.16 million, up from 12.03 million in Q3 2025, representing a 1.11 per cent quarter-on-quarter increase. On a year-on-year basis, the number of customers declined by 8.52 per cent, from 13.30 million recorded in Q4 2024.”

The customer decline comes despite a 6.76 per cent increase in electricity supplied by the distribution companies, which rose from 6,207.85 gigawatt-hours in the fourth quarter of 2024 to 6,627.56GWh in the same period of 2025.
Revenue collection also climbed significantly during the period.

The NBS said total revenue generated by the Discos increased by 23.75 per cent year-on-year to N630.93bn in the fourth quarter of 2025 from N509.84bn recorded in the corresponding period of 2024. On an annual basis, collections rose from N1.69tn in 2024 to N2.32tn in 2025.

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Ikeja Electricity Distribution Company recorded the highest annual revenue of N440.86bn, followed by Eko Disco with N420.57bn and Abuja Disco with N375.95bn.

Metering also improved substantially, with the number of metered customers rising from 6.21 million to 6.97 million within one year, representing a 12.18 per cent increase.

The report noted that the proportion of customers on prepaid meters increased from 46.71 per cent in December 2024 to 57.27 per cent in December 2025, while estimated billing declined by 26.67 per cent as unmetered customers dropped from 7.09 million to 5.20 million.

It stated, “Similarly, the number of metered customers reached 6.97 million in Q4 2025, representing a 4.58 per cent increase from 6.66 million recorded in the preceding quarter. On a year-on-year basis, metered customers increased by 12.18 per cent.

“In addition, the number of estimated customers stood at 5.20 million in Q4 2025… On a year-on-year basis, estimated customers decreased by 26.67 per cent.”

Despite the improvements, several Discos recorded significant losses in customer numbers.

Benin Electricity Distribution Company posted the highest decline, losing 379,616 customers, followed by Kaduna Disco with 341,150 customers and Yola Disco with 311,527 customers.

Ibadan Disco lost 199,409 customers, while Port Harcourt, Kano, Eko and Jos Discos also recorded declines.

However, Enugu Electricity Distribution Company gained 245,129 customers during the period, Abuja Disco added 146,378 customers, while Ikeja Disco recorded an increase of 22,016 customers.

The development comes as households and businesses increasingly abandon the national grid over persistent power outages and high electricity costs.

Reports indicate that 24 bulk electricity consumers secured licences in 2024 to disconnect from the national grid and generate their own power, while another 22 entities obtained off-grid generation permits with a combined capacity of about 289 megawatts.

See also  Reps Summon Management of Benin, Port Harcourt, Ibadan Discos Over N100bn Payment DefaultBy Saint Mugaga

Similarly, about 250 manufacturers and tertiary institutions have exited the distribution companies’ networks in favour of self-generation due to unreliable electricity supply.

Recently too, some companies listed on the Nigerian Exchange spent N400.83bn on alternative energy sources in the first quarter of 2026, representing a 3.66 per cent increase from N386.67bn recorded in the corresponding period of 2025.

The firms that separately disclosed electricity expenses recorded an 81.50 per cent increase in power costs, reflecting the combined impact of higher tariffs and continued dependence on diesel, gas and other alternative energy sources.

The Minister of Power, Chief Joseph Tegbe, has however, assured Nigerians that electricity supply would improve significantly before the end of the year, saying the Federal Government was implementing difficult but necessary reforms to address decades of underinvestment and poor management in the power sector.

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Energy and Power

NNPC Advocates Regional Integration, Technology-Driven Energy Growth

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By Musa Aliyu

The Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, delivered a keynote address at the Africa Technology Conference (ATC 2026) in Abidjan, Côte d’Ivoire.

Represented by the Managing Director of NNPC Engineering & Technical Company Limited, Salahuddeen Tahir, the GCEO spoke on the theme “Harnessing Innovation and Technology for a Resilient and Sustainable African Energy Sector.”

Ojulari called for deeper collaboration among African governments, national oil companies, investors, and technology partners to drive energy integration and support a just and pragmatic energy transition for Africa.

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Energy and Power

Gov Alia Signs Benue State Electricity Law 2026 to Boost Power, Jobs, and Investment

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New law aims for stable supply, lower business costs, consumer protection, and rural electrification

By Felix Umande, Makurdi

Governor Hyacinth Alia’s signing of the Benue State Electricity Law, 2026 into law has set the legal framework for the state’s power generation, transmission, and distribution.

The state is now geared toward meeting its power needs and depending less on the national grid, towing the line of states like Abia, Imo, Edo and Lagos among others.

The Governor performed the signing ceremony on Monday at the Old Banquet Hall of Government House, Makurdi.

According to government officials, the legislation is designed to deliver multiple benefits to residents and the state’s economy:

The law creates the framework for local electricity generation, transmission, and distribution which will generally increase power supply. Officials expect this will lead to more reliable and stable power for homes, businesses, schools, and hospitals.

Stable electricity is projected to attract investors, encourage new industries and businesses, as well as create more employment opportunities for thousands of Benue residents, especially youths.

With better grid power, businesses will spend less on generators, fuel, and alternative sources. The government says this will lower production costs, increase profitability, and make locally made goods more competitive.

The law similarly provides mechanisms to enforce consumer rights. These include fair billing practices, improved service delivery, quicker resolution of complaints, and greater accountability from electricity providers.

Communities without electricity are expected to benefit from the new initiative. With Benue generating its power, officials are optimistic about improved healthcare delivery, education, agricultural processing, security, and overall better living standards statewide.

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In summary, the administration says the Benue State Electricity Law, 2026 will help deliver more reliable electricity, stimulate economic development, protect consumers, create jobs, and improve quality of life. The government says it positions Benue for greater industrialization and sustainable growth.

The signing comes as states across Nigeria increasingly leverage powers granted them by the 2023 Electricity Act to generate, use and regulate their own power sources.

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