FG’s Electricity Subsidies Hit N199.64 Billion in December — NERC

By Emmanuel Kwada

The Federal Government’s expenditure on electricity subsidies has surged to N199.64 billion in December 2024, according to the latest data from the Nigerian Electricity Regulatory Commission (NERC). This significant increase highlights the government’s ongoing efforts to cushion the impact of rising electricity costs on Nigerian consumers.

In the second quarter of 2024, the government paid N38 billion as subsidy on electricity consumption, with a total of N380.06 billion assumed as subsidy to shield consumers from tariff increases

It’s worth noting that this subsidy payment is part of the government’s broader strategy to stabilize the power sector. In the second quarter of 2024, the government paid N38 billion as subsidy on electricity consumption, with a total of N380.06 billion assumed as subsidy to shield consumers from tariff increases.

The NERC report also revealed that the government has taken responsibility for 52% of total generation costs, amounting to N380.06 billion, to prevent tariff increases following the freezing of end-user tariffs at December 2022 levels.

As the government continues to grapple with the challenges of providing affordable and reliable electricity to its citizens, the increasing subsidy payments underscore the complexity of the issue. The NERC data provides a critical insight into the government’s efforts to address the power sector’s woes, and it remains to be seen how these subsidies will impact the sector’s long-term sustainability.