Electricity subsidy costs Nigerian govt N36bn in three months— NERC

According to the Nigerian energy Regulation Commission (NERC), the Federal Government spent a total of N36 billion to subsidize the nation’s energy usage in the first quarter of 2023.

This was reported by NERC in its quarterly report, which also noted that the sum totaled the monthly payment of N12 billion made to the Nigerian Bulk Electricity Trading (NBET).

The NBET was tasked with collecting money owed to generator firms and the Transmission Company of Nigeria from the DisCos. According to NERC, N141.5 billion of the N209.2 billion invoice sent to the DisCos was paid to the NBET.

According to a breakdown, Benin DisCo paid N14.4 billion from its N17.8 billion bill, Eko Disco paid N19.4 billion from its N22.8 billion charge, and Enugu DisCo paid N15.72 billion from its N20 billion. Abuja DisCo paid N20 billion from the N32.8 billion it was billed.

Ikeja DisCo paid N29.6 billion from the N35.9 billion given to it, Jos DisCo paid N7. billion from the 8.8 billion it was billed, Kaduna DisCo paid N1.8 billion from the N15.3 billion given to it, Kano DisCo paid N6.1 billion from its N15 billion, Port Harcourt DisCo paid 8.5 billion from its N14.5 billion, and Yola DisCo paid N899 million from the N1 billion it was billed.

The government’s action, according to NERC, was necessary since there were no cost-reflective tariffs. As a result, the government agreed to subsidize the difference between the cost-reflective and permissible tariffs. The NBET bills that are due from DisCos are covered by this financing.