Minister of Power, Chief Adebayo Adelabu, said that despite tariff adjustments that boosted market liquidity by 70 per cent – raising sector revenue from N1 trillion in 2023 to N1.7 trillion in 2024 – the distribution segment remains the weakest link.

He said: “In the fourth quarter of 2024, DisCos in the North remitted just N124.4 billion (30 per cent) of their N408.86 billion invoice, with Abuja DisCo accounting for 85 per cent of northern payments.

Southern DisCos fared slightly better, remitting N254.6 billion (67 per cent), though 70 per cent of this came from Lagos DisCos alone.

“These discrepancies are due largely to crumbling infrastructure outside economic hubs, where underinvestment has left networks dilapidated.”

He spoke at a two-day retreat organised by the Senate Committee on Power, according to a statement yesterday by Special Adviser, Strategic Communication and Media Relations to the Minister of Power, Bolaji Tunji. Adelabu noted that the metering gap, a key driver of revenue loss and consumer distrust, underscores systemic neglect.

He added that the government has launched a N700 billion Presidential Metering Initiative (PMI) and a World Bank-backed programme targeting 4.3 million meters by 2025; 75,000 units were deployed in April 2024, while additional 200, 000 is expected in May.

“Closing this gap is fundamental to fair billing and financial sustainability. But we are not there yet due to underinvestment and operational inefficiencies.

“The sector also faces a N4 trillion subsidy backlog owed to generation companies, including N1.94 trillion for 2024 alone.

With monthly subsidy shortfalls now hitting N200 billion, the minister warned that maintaining current tariffs is “unsustainable,” straining public funds needed for infrastructure upgrades.

“To salvage the sector, we will soon embark on restructuring underperforming DisCos and tightening enforcement of performance benchmarks.