Constant power outage is a regular occurrence in Nigeria, business owners can relate because they know how this situation makes their pockets lean.
There has hardly been a period where the electricity supply ran for a day without being interrupted in Nigeria.
In some areas, what you get as an electricity supply is low current while in some areas there is no hope for a power supply.
To change the narrative, the federal government is aiding the Electricity Distribution Companies to improve electricity supply.
To improve the electricity supply in Nigeria, the federal government has approved ₦153.2 million for Electricity Distribution Companies.
So effective from January 1, 2024, 11 Electricity Distribution Companies (DisCos) will get ₦153.2 million to boost their services.
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The approved Capital Expenditure (CAPEX) fund would be disbursed to DisCos through the Nigerian Electricity Regulations Commission (NERC).
This fund will help DisCos commit to service improvement programmes that will ensure improved power supply.
Also, it should aid in the reduction of Aggregate Technical, Commercial, and Collection losses (ATC&C), and implementation of effective billing and payment structure, as well as improved customer metering.
NERC approved separate CAPEX packages for each DisCos under the Performance Improvement Plan (PIP) based on their engagements.
This decision was based on NERC’s justification of the associated costs and resulting tariffs.
The information is contained in the Multi-Year Tariff Order (MYTO) 2024 recently released by NERC.
Breakdown Of CAPEX Allocation
Eko Electricity Distribution Company(EKEDC) got the highest amount ₦23 billion followed by Ikeja DisCo ₦19 billion.
Abuja Electricity Distribution Company(AEDC) and Yola Electricity Distribution Company(YEDC) got ₦18 billion and ₦7 billion respectively.
The allocated amounts are expected to assist the DisCos with their growth initiatives in their respective service improvement investment programs.
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NERC also approved ₦6.25 billion for the DisCos to install a minimum of 65,000 meters annually, towards phasing out estimated billing methodologies.
The amount will aid the DisCos meter roll-out programme annually for a period of five years, that is from 2023-2027.
