FG spent N633bn to subsidise electricity in three months – NERC

FG spent N633bn to subsidise electricity in three months – NERC

Electricity subsidies gulped a staggering ₦633.30 billion in the first quarter of 2024, Nigerian Electricity Regulatory Commission has disclosed.

This information is contained in the commission’s quarterly report.

The N633.30 billion represents a 150.5% increase from the ₦252.76 billion paid in the fourth quarter of 2023 by the federal government.

The massive jump in subsidy payment has been attributed to the government’s policy to unify exchange rates and the absence of cost-reflective tariffs across all electricity distribution companies.

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According to the report, the distribution companies (DisCos) recorded a revenue shortfall despite the significant increase in subsidy.

The DisCos collected only ₦291.62 billion out of ₦368.65 billion billed to customers.

The energy billing efficiency as the total energy received by all DisCos standing at 7,171.93GWh, explaining that the energy billed to end-use customers was 5,769.52GWh, resulting in an overall billing efficiency of 80.45%.

Ikeja DisCo topped the revenue collection chart followed by Eko DisCo and Yola DisCo with ₦57.88 billion, ₦48.74 billion and ₦5.46 billion respectively.

FG spent N633bn to subsidise electricity in three months – NERC