By Gideon Osaka
Ibadan Electricity Distribution Company (IBEDC) Plc stands today as a powerful example of resilience, strategic leadership, and transformation within Nigeria’s challenged power sector. As the largest electricity distribution company in Nigeria serving Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi States, IBEDC’s evolution from chronic underperformance to being named Nigeria’s most improved distribution company reflects a bold and focused reform agenda that is unparalleled.
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. These challenges were further compounded by broader macroeconomic pressures, including policy volatility, inflation, and shifting regulatory frameworks.
Since July 2022, when the new Board and Management took office, the company has embarked on critical reforms that have been instrumental in its recent successes. Notably, IBEDC’s efforts during this period led to it being widely regarded, within the industry, as Nigeria’s most improved distribution company, underscoring its successful turnaround and commitment to excellence.
This progress is primarily attributed to the strategic leadership of the Managing Director/CEO, Engr. Francis Agoha, ably supported by the Board. Since assuming office on May 31, 2024, the MD/CEO 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. According to 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 the reputable audit firm Ernst & Young (EY), showed positive indications that the company’s fortunes have dramatically improved, having transitioned from a loss-making to a profit-making entity. Profit after tax exceeded N8.9 billion, while total assets increased to over N685 billion.
Financial discipline as the foundation for growth
At the heart of IBEDC’s transformation is a strong commitment to financial discipline. Since November 2024, the company has consistently maintained a 100% market remittance rate—an exceptional achievement in a sector long plagued by liquidity issues and payment defaults. This 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.
Under the current leadership, IBEDC’s monthly revenue collection has more than doubled—from an average of N10 billion to consistently above N20 billion since December 2024. In February 2025, the company achieved an all-time high monthly collection of N22.028 billion, following a previous milestone of N21.985 billion in October 2024. Furthermore, IBEDC recorded its best Non-Maximum Demand (Non-MD) collection of N7.634 billion in January 2025.
Enhanced Customer Engagement and Seamless Payments
The strategic leadership of the Managing Director/CEO, Engr. Francis Agoha, with the guidance of the Board, has brought about a renewed emphasis on customer care, performance, and accountability. Under his leadership, the company has introduced targeted interventions that are already delivering measurable results. A key initiative that underscores this customer-centric approach is 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 enhanced customer experience and digital accessibility, providing 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.
IBEDC has also ramped up customer communication through dedicated weekly radio and television programs across its service areas. These programs offer interactive platforms for customers to raise concerns, ask questions, and stay informed about ongoing improvements.
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. This customer-centric approach aligns with the Nigerian Electricity Regulatory Commission’s (NERC) recent directive, which requires Distribution Companies (DisCos) to resolve at least 75% of customer complaints from Q1 2025 onward—a benchmark that IBEDC is well-positioned to exceed.
Closing the Metering Gap
Metering has long been a critical issue in Nigeria’s power sector, and IBEDC has made it a top priority in its reform strategy. With a customer base exceeding two million, only 43% were metered as of 2024. The company is now aggressively addressing this gap, targeting a metering coverage rate of over 60% by the end of 2025.
This ambitious goal is being pursued through multiple initiatives. Over 104,000 meters were deployed under Phase 0 of the National Mass Metering Programme (NMMP). At the same time, the revitalised 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, known as the Metering Acquisition Fund (MAF), to expedite the deployment of meters in high-impact areas and along critical feeders, with an annual target of over 240,000 meters.
These metering efforts are restoring consumer confidence, curbing energy theft, and aligning billing with actual consumption—key steps toward operational transparency and improved revenue assurance.
Combating energy theft, system losses
Energy theft remains one of the most significant threats to the sustainable distribution of electricity in Nigeria. Between January and October 2024, IBEDC recorded over 8,000 incidents of energy theft, including meter bypasses, illegal reconnections, and direct tampering.
In response, IBEDC has repositioned its Revenue Protection Team and intensified its crackdown on 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, signalling 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 innovative 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. 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.
Strengthening supply and customer segmentation
A core component of IBEDC’s achievements is the upgrade of existing infrastructure as well as the enhancement of supply quality. In Q1 FY25 alone, the company added two new 33kV feeders (Iperu 33kV and Joju 33kV) and three 11kV feeders (Offa Commercial, Igbayilola Commercial, and Technical 11kV feeders), enhancing power distribution and reliability in key locations. Additionally, 91 distribution transformers (DTs) with a combined capacity of 34.45 MVA were added to the grid, directly improving supply for thousands of customers.
IBEDC is also upgrading customer supply bands. 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.
The company has also enhanced the quality of supply by restoring service to key Maximum Demand (MD) customers. Notably, Mountain of Fire Ministries in Mowe returned to the grid following improvements in its supply. Furthermore, an ongoing partnership with Verge Power facilitated the reconnection of six major MD customers, bolstering revenue and grid utilisation. Following the signing of the 30MW power purchase agreement between Bresson, Magboro Power Company, and IBEDC on 28th October 2024, customers around Magboro and Mowe are expected to benefit from 24 hours of uninterrupted electricity supply very soon, as a result of the collaboration.
As part of efforts to strengthen our infrastructure and address the growing demand for transformers across our 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.
Looking ahead
IBEDC’s transformation is both intentional and ongoing. The journey from inefficiency to operational excellence is being driven by sound leadership, data-informed reforms, and a strong accountability framework. Achievements such as 100% market remittance, a doubling of monthly revenue, expanded metering, and reduced losses are a testament to what is possible with the proper strategic focus.
As the Nigerian electricity sector continues to embrace further decentralisation and market reforms, IBEDC is not just adapting—it is leading. With a robust operational roadmap, strategic partnerships, and a people-first culture, IBEDC is positioning itself to become not only Nigeria’s most improved distribution company (Disco) but also one of the most resilient and future-ready utilities on the continent.
