NERC Reveals FG’s N199 Billion Subsidy for Nigerian Electricity in December
The Nigerian Electricity Regulatory Commission (NERC) has reported that the Federal Government’s electricity subsidy payments increased to ₦199.64 billion in December 2024, up from ₦194.26 billion in November.
Key Factors Influencing the Increase:
- Exchange Rate: The exchange rate was pegged at ₦1,687.45 to the U.S. dollar.
- Inflation Rate: Inflation rose to 33.9%.
- Generation Capacity: Adjustments in available power generation capacity also contributed to the subsidy increase.
Tariff Details:
- Band A Customers: Continued to pay ₦209 per kWh.
- Bands B to E Customers: Tariffs remained frozen at December 2022 rates.
Subsidy Allocation by Distribution Company:
- Abuja Electricity Distribution Company: Consumers are expected to receive ₦29.10 billion in subsidies, up from ₦27.86 billion in November.
- Ikeja Electric: Consumers are allocated ₦26.68 billion in subsidies.
NERC has indicated that these tariffs are subject to monthly adjustments based on key economic indicators, including inflation rates, exchange rates, and gas-to-power prices.
The cumulative electricity subsidy for 2024 is projected to reach approximately ₦2.4 trillion by year-end.