July 21, 2024

NERC earns N7.2billion revenue in Q2,2021

Oredola Adeola

The Nigerian Electricity Regulatory Commission (NERC) generated total estimated revenue of N7.2bllion as Market Charges(MC) and internal Generated Revenue(IGR)  for the fourth quarter of 2021 (Q4, 2021).

This was revealed in an analysis of the data for the four quarters provided by the industry regulator, and obtained by EnergyDay at the weekend.

The revenue represented the total sum of money collected from Meter Service Provider (MSP) and Meter Asset Providers(MAP), permits for the importation of generating sets, permits for captive generation fees, generating and distributing companies processing, application, renewal fees other sources for the fourth quarters of 2021.

EnergyDay gathered that NERC’s total revenue increased by 63.99 percent in the Q4, 2021, with about ₦2,792.81million  higher than the ₦4,364.67million revenue realised by the Commission in Q3, 2021.

NERC attributed the increase in revenue to the increase in operating levy which rose by ₦2,596.83million (+59.74%) from ₦4,346.67million realized in 2021/Q3 to ₦6,943.50million in 2021/Q4.

It added that other Internally Generated Revenue (IGR) also improved from ₦18.00million in 2021/Q3 to ₦213.98million in 2021/Q4 representing a growth of  1100% compared to 2021/Q3.

The Nigerian electricity industry regulator disclosed that the total (capital and recurrent) expenditure stood at ₦2,473.36million representing a ₦955.73 million (+62.98%) increment from the ₦1,517.63 million incurred during 2021/Q3.

This increase, according to the Commission, was largely attributable to the increased personnel cost that doubled between 2021/Q3 and 2021/Q4.

The data released by the Commission comparing the revenue and expenditure within the fourth quarter of 2021 revealed a positive net cash flow of ₦4,684.12million. However, the total outstanding liabilities at the end of the quarter stood at ₦4,361.18 million.

EnergyDay further gathered that the proper management of the Commission’s cash flow remains one of its key financial obligations.
The Commission promised to monitor its expenditure and liabilities, restating the commitment to continuously work on the regulatory interventions necessary to improve liquidity in the industry.