The federal government incurred the sum of N464.12bn as subsidy payment in the electricity sector for the third quarter of 2024, a report by the Nigerian Electricity Regulatory Commission showed.
The report stated that the sum is due to the absence of cost-reflective tariffs across all DisCos.
It said the payment is an increase of N84bn, from the N380bn that was paid in the second quarter, adding that the increase in the subsidy obligation of the government is as a result of its policy to freeze allowed tariffs paid by customers despite the increase in the cost-reflective tariffs.
It added that the total revenue collected by all DisCos during the period was N466.6bn out of the N626bn that was billed to their customers.
This translates to a collection efficiency of 74.55 per cent. In comparison, the total revenue collected by all DisCos in 2024/Q2 was N431.16bn out of the N543.64 billion billed to customers which translated to a 79.31 per cent collection efficiency.
It however said the 74.55 percent collection efficiency recorded was 4.76 per cent lower than the collection efficiency recorded in 2024/Q2 (79.31 per cent).
