The Nigerian power sector is under intense pressure as electricity customers nationwide now owe a staggering ₦497 billion to Distribution Companies (DisCos) as of 2024, according to new data released by the Nigerian Electricity Regulatory Commission (NERC).
This rising debt is posing serious challenges to the already fragile power supply system, affecting operations, investments, and future reforms…..CONTINUE READING
While both residential and commercial users are in debt, government ministries, departments, and agencies (MDAs) are among the biggest defaulters. Some states reportedly owe billions in unpaid electricity bills for public institutions and street lighting.
In the residential sector, postpaid users without prepaid meters are the biggest contributors to the rising debt due to estimated billing practices, which many Nigerians see as unfair.
Several factors are responsible for this massive backlog:
-
Economic hardship: Inflation and subsidy removals have left many Nigerians struggling to afford basic services.
-
Poor power supply: Many customers refuse to pay for electricity they barely receive.
-
Lack of prepaid meters: DisCos still rely heavily on estimated billing, which leads to inflated and disputed charges.
-
Weak enforcement: DisCos lack the legal and operational capacity to aggressively recover debts.
Experts warn that this growing debt will:
-
Cripple the ability of DisCos to invest in infrastructure
-
Delay expansion of prepaid metering
-
Lead to even poorer service delivery
-
Potentially increase tariffs for paying customers
According to a NERC official:
“If customers don’t pay, the entire power value chain—from generation to transmission to distribution—suffers.”
The federal government, along with NERC, is pushing for:
-
Mass metering programs to reduce billing disputes
-
Debt recovery drives targeting top defaulters
-
Stricter penalties for persistent non-payment
-
Encouraging customers to switch to prepaid plans
On social media, Nigerians are divided:
“Why should I pay for light I don’t see?”
“They need to fix supply first before chasing debts.”
Others urge citizens to fulfill their part to keep the system running.
