The monthly spending of the Federal Government on electricity subsidy obligation has reached N1.91tn in the first 11 months of 2024, a new report by the Nigerian Electricity Regulatory Commission has disclosed.
It also stated that power distribution companies collected a total revenue of N1.23tn during the first nine months of 2024, exceeding the total revenue generation of N1.08tn in 2023.
An analysis of figures from the power sector regulator’s monthly supplementary order posted on its website on Sunday indicated that electricity subsidies continued to increase every quarter throughout the year despite the elimination of subsidies for Band A customers.
The amount incurred between January and November 2024, represents an increase of 204.15 per cent or N1.283tn from N628.61bn recorded in 2023.
A breakdown showed that N633.30bn was incurred as electricity subsidy in the first three months of 2024. It however reduced to N380bn in the second quarter. In the third quarter, spanning July, August and September, the amount surged by 36.46 per cent to N518.55bn.
The subsidy costs for October and November were N380.06bn despite several incidents of the national grid collapse.
