The Federal Government (FG) has spent N628.61 billion on electricity subsidies as Electricity Distribution Companies (EDCs) made a revenue of N1.08 trillion in 2023.

This was revealed in the latest sectoral report from the Nigerian Electricity Regulatory Commission (NERC) released on Wednesday, May 22, 2024.

According to the report, power subsidies in the first, second, third, and fourth quarters 2023 were N36.02 billion, N135.23 billion, N204.6 billion, and N252.76 billion, respectively.

The report further added that electricity distribution companies made a revenue of N247.09 billion, N267.86 billion, N267.61 billion, and N294.95 billion in the first, second, third, and fourth quarters of 2023, respectively.

Disclosing the amount spent on electricity subsidy in the fourth quarter of 2023, NERC said: “It is important to note that due to the absence of cost-reflective tariffs across all Discos, the government incurred a subsidy obligation of N252.76bn in 2023/Q4.

“This increase is mainly attributable to the government’s policy to harmonise exchange rates while also directing that end-user customer tariffs remain at the December 2022 approved rates.

“It is important to note that due to the absence of cost-reflective tariffs across all Discos, the government incurred a subsidy obligation of N204.59 billion in 2023/Q3 (an average of N68.20bn per month).”

BEB