Key questions this article answers:
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Generation and transmission companies recorded increased supplies in Q4 2022. How did the power sector improve?
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Most distribution companies recorded lower loss levels than in Q3 2022. What does this performance mean for consumers?
Electricity tariffs in Nigeria are still on an upward trend.
In January this year, most discos finally achieved a feat that seemed impossible two years ago when tariff reforms began—cost-reflective tariffs. However, there were still a few gaps in the tariff equation.
You see, tariffs are derived from the costs of supplying electricity by the generation, transmission and distribution companies divided by the amount of electricity supplied. However, macroeconomic variables such as inflation and the exchange rate affect these costs. While electricity tariffs currently reflect the inflation rate, the exchange rate has always been the official rate. But in reality, due to FX shortages in the country, Nigerian electricity companies have
