HomeIndustry SectorsFinance and PolicyNigeria: KAEDCO consider prepaid meters to improve revenue collection

Nigeria: KAEDCO consider prepaid meters to improve revenue collection

The Kaduna Electricity Distribution Company (KAEDCO) has revealed that from January 2017 to date, it has generated an estimated N1.7 billion ($6 million) in Sokoto state in revenue collection.

The company’s business development relations officer, Abubakar Ibrahim Hashim, told THISDAY in an exclusive interview that the amount was recorded in the state over the past eight months.

He explained that the company generates between N200 million ($557,000) and N220 million ($613,000) in the state monthly.

Hashim highlighted that the residents consume energy worth between N500 million ($1,3 million) and N600 million ($1,6 million) monthly and yet only pay N200 million to the company.

“Our monthly target in Sokoto state is about N600 million but we generate between N200 million and N220 million monthly. In fact, the highest was N260 million ($724,000) in March 2017 and this is our greatest challenge,” he said.

Prepaid meters improving revenue collection

However, he underlined that the major issue in terms of revenue generation, has to do with the inability of consumers to pay their electricity bill. Read more…

“That is why we want to provide prepaid meters to all our customers for us to have the accurate energy provided to consumers. I believe that doing this will go a long way in improving our revenue,” he said.

“I can tell you that we don’t even generate 50% revenue of what is consumed in Sokoto. The investors are really complaining because of this and up till now they are still operating at a loss. They are yet to break even,” Hashim added.

According to media, he went on further to underline the need for energy consumers in the state to attempt to pay their electricity bills on time to enable the company provide better services for them.


Featured image: Stock

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.