The electricity subsidy obligation of the Federal Government rose from N252.76bn to N633.30bn in the first quarter of 2024, a report by the Nigerian Electricity Regulatory Commission has disclosed.
The NERC said the electricity subsidy skyrocketed to N211.10bn per month in the first three months of 2024 from N84.25bn in the last quarter of 2023.
NERC revealed that the increase was largely attributable to the government’s policy to harmonise the exchange rates while also issuing a policy directive that end-user customer tariffs remain at the rates that came into effect in December 2022.
“Due to the absence of cost-reflective tariffs across all distribution companies, the government incurred a subsidy obligation of N633.30bn (90.57 per cent of total Nigerian Bulk Electricity Trading Plc invoice) in Q1 2024 (an average of N211.10bn per month). Across 2024/Q1, this represents an increase of N380.56bn (150.56 per cent) compared to the N252.76bn (an average of N84.25bn per month) incurred in Q4 2023,” the regulator stated.
