The Abuja Electricity Distribution Company has reduced its aggregate technical, commercial, and collection losses from about 42 per cent to 32 per cent within one year, as it intensifies metering, network upgrades, and embedded generation projects to improve power supply across its franchise area.
Managing Director of the distribution company, Chijioke Okwuokenye, disclosed this on Thursday in Abuja during a media briefing where he highlighted the company’s operational milestones and long-term strategy to stabilise electricity supply.
Okwuokenye said the company had also increased its energy intake by almost 15 per cent in the past year, describing the growth as a key indicator of improved supply to customers.
He said, “This gives us an opportunity to really tell our story. In the few years we have taken over operations at AEDC, we have made notable strides. We are not where we need to be, but we have made progress in investments and service delivery.
Last year, we increased our energy intake by almost 15 per cent compared to the previous year. These are real electrons flowing through the grid. That, for us, is a measure of progress.”
He acknowledged persistent outages in some communities but noted that network expansion and new power sources would gradually address the gaps. According to him, a 350-megawatt generation plant being built by the Nigerian National Petroleum Company Limited in Gwagwalada would significantly improve supply in Abuja and surrounding areas.
“We are working closely with NNPC to ensure we take up that power and improve service delivery. By this time next year, the current pressure on energy supply, especially during the dry season, will reduce significantly,” he said.
The AEDC boss also linked future improvements to the completion of the Ajaokuta–Kaduna–Kano gas pipeline, which is expected to enhance gas availability for power plants in the northern corridor.
He said, “With gas availability assured, our reliance on distant grid supply will reduce. This will help stabilise power to Abuja and neighbouring states.”
Okwuokenye revealed that the company had deployed about 70,000 meters within the last 14 months under various initiatives, including the Meter Asset Fund and the Distribution Sector Recovery Programme. He said the effort was aimed at ending estimated billing, improving transparency, and boosting sector liquidity.
“Between last year and the first two months of this year, we have deployed about 70,000 meters. These are real customers who moved from estimated billing to credible billing. This improves customer confidence and ensures that the market becomes more liquid,” he said.
He noted that improved revenue collection had enabled AEDC to meet its market payment obligations and begin settling legacy debts. According to him, “Before now, AEDC was known for debt accumulation. That is now in the past. We are meeting 100 per cent of our obligations to the market and paying down previous debts.
“When DisCos pay, GenCos can pay for gas, and the transmission company can invest in expansion. This ensures more power for Nigerians.”
The company also announced plans to deploy embedded solar generation in underserved locations. Okwuokenye said AEDC intended to build three 10-megawatt solar plants around Lokoja, which could be expanded as demand grows.
“We are planning solar clusters to surround Lokoja so that even if the grid supply reduces, we will have enough energy within our franchise to meet demand. This will ensure Lokoja citizens do not feel the impact of reduced supply,” he stated.
He added that the company was also adopting a franchise model to attract private investment into difficult-to-serve areas. “The capital requirement in power distribution is huge. Through the franchise scheme, we can collaborate with investors who will take over certain areas, invest in infrastructure, and recover their investment over time. This will help us improve service in states like Kogi, Niger, and Nasarawa.”
On rising electricity tariffs, the AEDC boss said the company was focused on value creation rather than pricing, noting that tariffs would eventually decline as supply improves and losses reduce.
He said, “Tariffs will eventually find their level. If we reduce losses and grow energy supply, prices will come down because electricity is a volume business. Nobody is happy charging high tariffs.”
He blamed power theft and vandalism for part of the sector’s challenges, recounting recent cases of energy diversion.
“We recently caught a hotel diverting power underground to bypass the meter. Even after disconnection, the customer illegally reconnected. These are the losses we are talking about. If Nigerians help us reduce theft and vandalism, tariffs will reduce and supply will improve.”
Okwuokenye said discussions were ongoing with the Federal Government on targeted electricity subsidies to protect vulnerable consumers. He added, “The current tariffs reflect our realities, but they are not the end point. The government understands the need for targeted subsidies. These reforms will unlock sustainable power.”
Nigeria’s electricity distribution companies have faced persistent liquidity challenges due to high technical and commercial losses, low metering penetration and weak revenue collection.
Industry data show that improved metering, cost-reflective tariffs and private sector investment remain critical to stabilising the power sector and achieving reliable electricity supply.
The AEDC, which serves the Federal Capital Territory, Kogi, Niger and Nasarawa states, is one of the key players in ongoing reforms aimed at boosting energy access, enhancing grid reliability and supporting economic growth.
