From N650 Billion to N2.4 Trillion: FG’s 2024 Electricity Subsidy Explained
The Federal Government of Nigeria’s electricity subsidy is projected to rise by 269%, from ₦650 billion in 2023 to an estimated ₦2.4 trillion in 2024.
This increase stems from maintaining consumer tariffs significantly below cost-reflective levels, amidst rising inflation, exchange rates, and energy production costs.
The subsidy expansion aims to shield Nigerians from higher electricity tariffs but raises concerns about fiscal sustainability and its impact on government spending priorities.
This adjustment continues to spark debates over long-term energy reforms and cost management.