NERC (Nigerian Electricity Regulatory Commission) Report reveals gas supply challenges continues to be a pain on the neck in electricity generation.
Gas supply challenges led to a reduction of about
602 gigawatt hours electricity reduction.
NERC further iterated that
Average hourly output syood at 4,179.15 mw/h translating to reduced overall supply.
But despite these challenges, electricity distribution companies recorded improved Revenue performance.
Discos collected 570,21 billion out of N706.61 billion billed on customers. This is representing a collection efficiency of 80.7% yet consumers continued to experience power outages.
NERC cautions remittance gap still persists and cited
Ajaeokuta owing N1.03billion, this is still undermining market stability.
According to the report there is also an increased bilateral power transactions. These are.longer-term energy contracts that organise renewable energy payments over a predetermined period.
Contract lengths can vary from a year to twenty years or more, (NERC) in its Third Quarter 2025 report, noted that Togo, Niger, and Benin were invoiced a total of $18.69m by the Market Operator for electricity supplied during the period; however, they remitted only $7.125m, leaving an outstanding balance of $11.56m
NERC commission further disclosed that Government subsidies continued to aid the sector at a 58.63 percent. But he iterated that there was a drop in this government subsidy, FG paid N458.75billion in electricity subsidies which is 10.81 percent drop from 514.35billion.
NERC stated that the factor which continues to weigh on the sector is poor metering, customer dissatisfaction and unwillingness to affect revenue recovery across the electricity sector.
Why shouldn’t there be customers' dissatisfaction?, there is need to add strategy in their operation. For instance the tourism sector expressed dissatisfaction over how DISCOS disappointed them during during Christmas celebration, this is the peak of their revenue generation, there was increased influx of tourists but the power distribution companies made it a nightmare for them.
They recorded minimal revenue generation, purchasing diesel and fuel to give tourists maximum comfort, restaurateurs couldn’t store their frozen foods the same period paying more to cold rooms in other to preserve their food stuffs.
Lets face it, Incidences like this discourages prompt payment. Most of the hoteliers are of the opinion that it is better to reserve gas supply for this season. That’s strategy!. Incessant power outages when tourist are arriving the country doesn’t speak well for the country’s image.
Read also Aso Rock’s Planned Exit from the National Grid: A Subtle Signal to State Governments and a turning point in Nigeria’s Electricity landscape
