Nigeria’s electricity distribution companies (DisCos) raked in a staggering N1 trillion in revenue in 2023, marking the highest collection in the past decade. Despite frequent power grid collapses, including a major incident in September, DisCos continued to thrive, often resorting to overbilling customers.

The top earners were Ikeja, Eko, and Abuja Electricity Distribution Companies, with substantial revenue increases. Improved revenue collection coincided with a rise in overbilling, particularly for customers on estimated billing systems. The Nigerian Electricity Regulatory Commission imposed fines on DisCos for overbilling and ordered refunds to affected customers. The persistent poor power supply, worsened by fuel subsidy removal and gas supply issues, has prompted the government to threaten DisCos with license revocation. However, challenges persist, including significant debts to gas producers and the collapse of the national grid.