Electricity distribution: Challenges and efforts of IBEDC to change the narrative

Soji Ajibola examines challenges facing electricity distribution, consumers’ perspectives, and efforts of Ibadan Electricity Distribution Company (IBEDC) to change the narrative.

Electricity distribution has been one of the major challenges facing the various companies saddled with the responsibility nationwide. The challenges can be aptly described as “It was in the beginning, so it is now.” While consumers are groaning over persistent darkness as being experienced nationwide, it was noted that nothing has changed except the names of the organization.

Different administrations in the country have approached the challenges facing the power sector from different angles. In order to ensure the effectiveness of the sector, especially in the area of power generation and distribution, the administration of former President Goodluck Jonathan privatised the sector, which gave birth to the distribution companies, including Ibadan Electricity Distribution Company (IBEDC) nationwide.

IBEDC was formed in November 2013 during the unbundling and privatisation of the Power Holding Company of Nigeria (PHCN). IBEDC inherited decades of systemic inefficiencies: dilapidated infrastructure, a poorly metered customer base, erratic load allocation, tariff deficits, billing inefficiencies, meter bypassing, staff-customer collusion, and weak revenue collection.

Also, the company is being confronted with the vandalism of its equipment, which includes transformers and cables, while fraudsters, on the other hand, are not helping matters. These challenges were further compounded by broader macroeconomic pressures—policy volatility, inflation, and shifting regulatory frameworks.

However, in its efforts to change the narrative, the management has since July 2022 embarked on critical reforms that have been instrumental in recent successes, which include its being regarded, within the industry, as Nigeria’s most improved distribution company, underscoring its successful turnaround and commitment to excellence.

The feat recorded, according to its Managing Director/CEO, Engr. Francis Agoha, is being attributed to the various policies put in place aimed at ensuring optimal performance. He said the management has not only sustained past gains but significantly recalibrated internal systems to deliver sustainable results.

As a testament to the ongoing revival championed by the current leadership, IBEDC has successfully transitioned from a loss-making entity to a profitable enterprise. In its 2021 audited financial statement, the company reported a Loss After Tax of N62.89 billion, with total assets exceeding N557 billion. In 2022, the Loss After Tax reduced significantly to N17.90 billion.

The 2023 audited financial report, conducted again by reputable audit firm Ernst & Young (EY), showed positive indications. The report translated to improvement from loss-making to profit after tax, which stands at over N8.9 billion, while total assets grew to over N685 billion.

The fiscal prudence has significantly enhanced IBEDC’s credibility with key stakeholders, including the Nigerian Bulk Electricity Trading (NBET) Plc, Market Operator, Transmission Company of Nigeria (TCN), and power generation companies (GenCos), while also restoring investor and regulatory confidence.

It was also disclosed that IBEDC’s monthly revenue collection more than doubled—from an average of N10 billion to consistently above N20 billion since December 2024. In February 2025, the company hit an all-time high monthly collection of N22.028 billion, following a N21.985 billion collection milestone in October 2024. Furthermore, IBEDC recorded its best Non-Maximum Demand (Non-MD) collection of N7.634 billion in January 2025.

For effective and optimal performance, the company has introduced targeted interventions that are already delivering measurable results. This initiative underscores the customer-centric approach, including the launch of the Customer Care WhatsApp platform, personally championed by the Managing Director.

This commitment to service excellence is further reflected in the recent string of awards the company has won for outstanding customer service. IBEDC has significantly improved customer experience and digital accessibility for easier, faster, and more convenient payment solutions. In July 2023, the company introduced the i-Recharge platform in collaboration with i-Recharge Tech-Innovations.

This multi-channel payment solution allows customers to recharge via USSD codes, ATMs, POS terminals, and mobile money agents, providing broad access even in low-connectivity areas. Also in 2024, IBEDC introduced IBEDCPay, an innovative home-grown payment app offering a wide range of benefits to customers, including speed, biometric security, and transaction history.

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IBEDC has also ramped up customer communication through dedicated weekly radio and television programs across its service areas. These programmes offer interactive platforms for customers to raise concerns, ask questions, and stay informed about ongoing improvements.

The Managing Director added that the company’s grassroots engagement strategy has further strengthened its relationship with customers. In the first half of 2024, IBEDC recorded approximately 3,000 monthly interactions across 18,000 communities. These touchpoints—facilitated by Distribution Transformer Managers, Executives, and Communication Officers—are vital to resolving issues in real-time and fostering trust.

The customer-centric approach, according to the Managing Director, is aligned with the Nigerian Electricity Regulatory Commission’s (NERC) recent directive requiring DisCos to resolve at least 75% of customer complaints from Q1 2025 onward—a benchmark IBEDC is well-positioned to exceed, closing the metering gap.

With a customer base exceeding two million, only 43% were metered as at 2024. The company is now aggressively addressing this gap, targeting a metering coverage rate of over 60% by the end of 2025.

He stated that the ambitious goal is being pursued through multiple initiatives. Over 104,000 meters were deployed under Phase 0 of the National Mass Metering Programme (NMMP), while the revitalized Meter Asset Provider (MAP) scheme now offers improved meter availability and a more user-friendly online application process.

In 2024 alone, over 69,000 meters were installed, and IBEDC was recognised by the Nigerian Electricity Regulatory Commission (NERC) as number one among all DisCos in Q2 2024 for meter installations. In January 2025, IBEDC launched the Presidential Metering Initiative scheme: Metering Acquisition Fund (MAF) to expedite deployment of meters in high-impact areas and along critical feeders, with an annual target of over 240,000 meters.

Energy theft, the Managing Director said, remains one of the most critical threats to sustainable electricity distribution in Nigeria. Between January and October 2024, IBEDC recorded over 8,000 incidents of energy theft, including meter bypasses, illegal reconnections, and direct tampering.

According to him: “IBEDC has repositioned its Revenue Protection Team and intensified crackdown of offenders through a partnership with the Special Investigation and Prosecution Task Force on Electricity Offences (SIPTEO). Offenders are now being prosecuted under the full weight of the law, signaling a strong deterrent against future infractions.”

Alongside enforcement, IBEDC is running extensive community awareness campaigns to educate customers on the financial and legal consequences of energy theft. Simultaneously, it is investing in smart metering solutions and Advanced Metering Infrastructure (AMI), enabling real-time monitoring, leak detection, and remote disconnection—critical tools for loss prevention and improved efficiency.

With these combined measures, IBEDC aims to reduce its Aggregate Technical, Commercial, and Collection (ATC&C) loss rate from an average of 32.73% in 2024 to below 25% by the end of 2025. In fact, the company recorded its lowest-ever ATC&C loss rate of 24.30% in October 2024. IBEDC ranked 3rd best in ATC&C performance in Q4 2024, a testament to the impact of these measures.

He added that IBEDC is also upgrading customer supply bands, and in Q1 2025, the number of Band B, C, D, and E customers migrated to Band A feeders surged from 30 in April 2024 to 126 by May 2025, increasing the share of customers receiving 20–24 hours of daily electricity.

As part of efforts to strengthen infrastructure and address the growing demand for transformers across its franchise, IBEDC established a transformer repair workshop in 2023. Leveraging local expertise, the workshop delivers high-quality repair services. Since its launch, over 127 transformers have been successfully repaired, bringing relief to approximately 400 communities. This innovative initiative has significantly mitigated the high costs associated with transformer replacement, which have soared due to foreign exchange challenges.

Investing in People and Performance

IBEDC said it understands that a motivated, capable workforce is critical to sustained success. To support its team, the company recently implemented a 25% salary increase to help offset inflationary pressures and uplift staff morale.

The revised Condition of Service of the company was signed and implemented in 2023. The conclusion of its 2023 performance appraisal exercise saw the recognition and rewarding of 1,327 employees with promotions, salary increments, and performance bonuses.