Business

Discos Generate N3.95trn In Five years

Published

1 year ago

August 26, 2024

Nigeria’s electricity distribution companies collectively generated about N3.95trn revenue between 2019 and the first quarter of 2024.
This is according to data from the National Bureau of Statistics (NBS).
The NBS data revealed an upward trajectory in revenue generation over the past five years, as the power distributors made N482.6billion in 2019, N526.8billion in 2020, N761.2billion in 2021, N828.1billion in 2022, N1.07billion in 2023, and N291.6billion in the first quarter of 2024.
Experts attribute this consistent growth in revenue to several factors, including ongoing tariff adjustments moving towards cost-reflective pricing, which has allowed the Discos to align revenue with the cost of providing electricity.
Also, the National Mass Metering Programme has increased the number of metered customers, reducing estimated billing and improving the accuracy of revenue collection.
The programme has also contributed to reducing Aggregate Technical, Commercial, and Collection losses that have previously plagued the sector.
Also, the enhanced regulatory oversight and the adoption of modern technology in billing and collection have streamlined processes, minimised revenue leakages, and improved collection efficiency.
However, despite this revenue growth, the Discos face significant challenges, including high unpaid bills, electricity theft, infrastructure deficits, and energy losses.
These issues have hindered the Discos’ ability to fully capitalise on the potential of Nigeria’s electricity market.
While reacting to this, the President of the Nigeria Consumer Protection Network, Kunle Olubiyo, questioned the efficiency of the Discos and called for urgent reforms.
According to him, despite the pre-privatisation commitments of the Discos to meter customers and the improved collection and billing efficiency, the power distributors had largely failed to meet their obligations.
“We cannot score the Discos more than five per cent. In terms of complaints resolution, they lack the software to track issues and have failed woefully in conflict resolution”, he said.
Olubiyo further highlighted the inadequacies of the Discos despite significant investments in the firms by the government and the Central Bank of Nigeria aimed at network improvements.
He raised concerns about the implementation of the Federal Government’s National Mass Metering Programme, accusing some meter vendors and Discos of conspiracy.
“Many of the customers listed as metered were not metered. The idea was to attach GPS coordinates to every metered point as a precondition for metering, but this was not done”, the NCPN President stated.
According to Olubiyo, the government’s ongoing intervention, which includes funding the importation and installation of two million meters annually using public funds, raises questions about the essence of privatisation.
He highlighted instances where governance or liquidity issues led to Discos being placed under receivership, with interim management teams appointed by the Bureau of Public Enterprises.
He, however, noted that the effectiveness of these interventions was often undermined by internal politics and job insecurity among Disco management.
He said, “We’ve seen board chairmen abruptly remove MDs in Abuja, Port Harcourt, and several other Discos”.
Olubiyo welcomed the recent empowerment of states to regulate electricity within their jurisdictions under the Electricity Act, describing it as a positive development.
“The migration of electricity from the exclusive to the concurrent list is a good omen”, he said.
He urged the Federal Government to invest its 40 per cent equity in Discos and shift towards resource-driven energy solutions.
Reflecting on the power sector’s performance since privatisation, Olubiyo lamented the stagnation in electricity generation.
He noted that “In 2013, the peak generation on the grid was 5,800 megawatts. As we speak, from 2013 to now, we haven’t even been able to hit 6,000 megawatts of electricity evacuation on the grid”.
Describing the present situation as “a decline or backward growth, progressing in error”, Olubiyo, however, praised the recent licensing of companies such as MTN and Honeywell to engage in Nigeria’s bulk electricity trading or captive generation.
He argued that off-grid generation and independent power plants, etc, were steps in the right direction to stabilise power supply, particularly for industrial areas.
This came as the Transmission Company of Nigeria, a Federal Government-owned firm that transmits electricity from power generation companies to distribution firms, announced that it had been grappling with funding shortfalls.
It said this has stalled the completion of 129 critical projects. TCN’s Managing Director, Abdulaziz Sule, who revealed this recently in Abuja, said the company was facing a funding gap of N637.37bn, out of a total required amount of N1.79tn.
Sule appealed to the National Assembly for intervention to address these challenges and ensure the timely completion of the critical projects. The funding gap, he noted, is delaying project completion and hindering efficient service delivery.
He said the company is dealing with other challenges including inadequate modern tools, port clearance issues, lengthy procurement processes, lack of spinning reserve, delayed donor-funded projects due to unpaid counterpart funding, and recent VAT and levy charges on offshore equipment.

Business

Customs Seek Support To Curb Smuggling In Ogun

Published

3 days ago

February 13, 2026

The Tide

The Nigeria Customs Service(NCS), Ogun 1 Area Command, has solicited support in fighting smuggling and other economic crimes at the Nations border.

The Area Comptroller, Olukayode Afeni made the appeal in an interview with Newsmen in Idiroko, Ogun.

The comptroller stressed the need for the public to provide timely and reliable information to the Service, saying noting that fighting smuggling is a collective effort

“I urge the general public to join hands with NCS by providing timely and credible information that would help toward suppressing smuggling and other economic crimes.”

“Together, we can build a prosperous nation where compliance is the norm, and criminality has no place,” he said.

Afeni reiterated the command’s commitment to combat smuggling, and facilitating legitimate trade, as well as generate revenue for national development.

Chinedu Wosu

Business

IFAD: Nigeria Leads Global Push For Youth, Women Investment In Agriculture

Published

3 days ago

February 13, 2026

The Tide

The 49th Session of the International Fund for Agricultural Development (IFAD) Governing Council has concluded in Rome, with Nigeria taking a prominent leadership role in advancing global agricultural development priorities, particularly strategic investment in youth and women.

The biennial meeting, themed “From Farm to Market: Investing in Young Entrepreneurs,” underscored the growing recognition of young people as critical drivers of job creation, innovation, and inclusive economic growth across global food systems.

The session opened with the election of Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari, as Chairperson of the IFAD Governing Council.

Having previously served as Vice Chair, his emergence as Chairperson reflects the strong confidence reposed in Nigeria by Member States, recognising the country’s constructive engagement and leadership in promoting global food security.

In his acceptance remarks, Senator Kyari expressed deep appreciation to Member States for the trust placed in him, pledging to serve with humility, diligence, and a strong commitment to improving the livelihoods of rural women and men across the world.

Addressing delegates during the session, the Chairperson emphasised that prioritising youth and women in agriculture is key to unlocking economic opportunities, accelerating innovation, and driving inclusive growth.

He noted that such investments would ultimately strengthen global food systems while helping to reduce hunger and poverty.

Senator Kyari also commended President Bola Ahmed Tinubu for placing food security at the centre of Nigeria’s national priorities.

He noted that Nigeria’s leadership role at IFAD aligns with the President’s directive to boost agricultural productivity, expand economic opportunities for youth and women, and build resilient food systems capable of withstanding climate and market shocks.

The Minister further praised the IFAD Nigeria Country Office, led by Country Director Ms Dede Ekoue, for translating global development commitments into measurable outcomes for rural communities.

He highlighted the office’s role in strengthening agricultural value chains, empowering youth and women, and improving resilience among smallholder farmers nationwide.

Business

Expert Tasks FG On Food Imports To Protect Farmers

Published

3 days ago

February 13, 2026

The Tide

The Federal Government has been urged to balance consumer protection with farmers’ sustainability by ensuring timely food imports, input subsidies expansion and price stabilisation mechanisms to secure investments across the agricultural value chain.

An agriculture expert, Dr Fatai Afolabi, gave the advice at a forum organised by the Plantation Owners’ Forum of Nigeria (POFON), in collaboration with the Oil Palm and Other Oil Seeds Value Chain, themed ‘Current Government Food Strategy, the Concomitant Effects and Implications for Food Security in Nigeria’, and held in Lagos, Wednesday.

Afolabi cautioned that the recent food import policies, while easing consumer prices, could undermine local farmers and long-term food security if not carefully managed.

He noted that Nigeria’s food system was navigating an exceptionally difficult period, marked by inflationary pressures, climate variability, insecurity in major food-producing regions, and rising energy and logistics costs.

He said the Federal Government’s decision to temporarily relax restrictions on selected food imports was understandable, noting that the market had responded swiftly with a reduction in prices of major staples.

However, the convener observed that while the policy had brought much-needed relief to consumers, it posed significant challenges for local farmers and agriculture value chain investors.

“While output prices have fallen, the cost of producing food in Nigeria remains stubbornly high.

“Farmers continue to contend with expensive fertilisers, rising transport costs, costly improved seeds and agrochemicals, limited access to affordable credit, poor electricity supply, weak road infrastructure, and inadequate storage and processing facilities, which result in significant post-harvest losses.

“This situation, where farmers sell produce at declining prices while production costs remain elevated, has created widespread distress across agricultural ecosystems,” he said.

Afolabi said the effects were being felt across all segments of agriculture, with rice farmers among the hardest hit.

He said reports from producing states indicated that about 3,500 rice farmers were considering exiting rice cultivation after incurring estimated losses of over N93 billion.

He added that cassava farmers were selling produce at prices that barely covered harvesting costs, leaving them unable to recover their investments.

According to him, vegetable and edible oil producers are also under pressure as imported vegetable oil brands reduce demand for locally processed alternatives.

He added that cocoa farmers continue to battle price volatility in international markets amid rising domestic labour and maintenance costs.

Afolabi noted that tree crops such as oil palm and cocoa, which require long gestation periods, were particularly vulnerable to sudden market disruptions that undermine investor confidence and discourage new investment.

He said the effects extended downstream to agro-processing and value addition, with soybean farmers supplying vegetable oil processors experiencing reduced demand and lower prices.

He said the development threatened not only farm incomes but also rural employment and agro-industrial growth, raising concerns about national food security.

According to him, sustained losses could force farmers out of production, increasing Nigeria’s dependence on food imports and exposing the country to global supply shocks, foreign exchange pressures and long-term vulnerabilities.

Afolabi cited India and the Netherlands as countries offering useful lessons in balancing consumer protection with farmer sustainability.

He said India deploys food imports strategically during shortages, while complementing them with strong domestic support systems.

He added that the Netherlands, despite being one of the world’s leading agricultural exporters, supports farmers through input subsidies, tax incentives, affordable energy, strong cooperatives, and close integration with research and extension services.

He said agricultural students in both countries also benefit from subsidised tuition, transportation and meals, as well as grants and start-up support for farm enterprises.

“This approach ensures generational continuity and innovation in the agricultural sector,” he said.

Afolabi said Nigeria’s current food import policy could play a stabilising role if complemented by deliberate measures to protect local producers.

He recommended carefully timed imports to avoid peak harvest periods, strengthened price stabilisation mechanisms, aggressive subsidies for critical farm inputs, and support for agro-processors to remain competitive.

He also called for clear communication of policy intentions to reassure farmers that import measures were strategic and temporary.

“Food imports should function as a strategic shock absorber rather than a permanent market feature.

“Government should develop and publish a national crop production and harvest calendar for major staples and align import decisions with documented supply gaps.

“Affordable food and profitable farming are not mutually exclusive goals. With thoughtful coordination and sustained support for farmers, Nigeria can achieve both,” he said.