The federal government, through the Nigerian Electricity Regulatory Commission (NERC), has approved 1.6 trillion naira to subsidize electricity in the year 2024 at a monthly average of 30 billion naira to 11 distribution companies (DisCos) in the country. with effect from January 1, 2024.This was disclosed by the chairperson of NERC, Sanusi Garba, on January 17, 2024, in Abuja. This is among the numerous achievements President Bola Tinubu aims at achieving in 2024 to spur the economic growth of his country and better the standards of living of the Population
The Federal government through the Nigerian Electricity Regulatory Commission (NERC) is set to pay around 1.6 trillion naira as electricity subsidy in 2024. The figure represents an increase of 170% from the 619 billion naira reportedly paid in 2023. The implication is that for any N150 electricity bill, the federal government will pay N90 while consumers will bear the remaining fraction. This was disclosed by the chairperson of NERC, Sanusi Garba on January 17, 2024, in Abuja. According to official figures, the federal government spent N700 billion on electricity tariffs in 2023.
“For the first time we have published what they should charge. We’ve also published the amount they’re allowed to charge based on government policy because government has decided for now arising from the cost of living crisis and so many things to in the meantime continue subsidizing electricity”
Sanusi Garba, Chairman of the Nigerian Electricity Regulatory Commission – Nigeria
NERC stated that about 30 billion electricity tariff adjustments would be made monthly to avoid rate hike shock. The development showed that Nigerians must battle with the new electricity pricing template amid heightened headlines and food inflation which increased to 28.92 per cent and 33.93 per cent in December 2023, according to the National Bureau of Statistics.
“Government in the past had frozen upward reviews of electricity tariffs for rural poor, R1 and R2 part of the subsidy template include capacity for generation, gas pricing, part oil or other pathed cost”
Kunle kola Olubiyo, Power sector analyst – Nigeria
From official figures, in the partition of the 1.6trillion naira electricity subsidy for 2024, the Abuja Electricity Distribution Company was attributed a greater share of 223.26 billion naira and Yola Electricity Distribution Company with the least share of 64.48 billion naira..
