FG Incurs N380bn electricity subsidy bill Q2 2024 — NERC

According to the Nigerian Electricity Regulatory Commission’s quarterly report released on Friday, the electricity subsidy bill dropped by 40 per cent to ₦253.24bn in Q2, from ₦633.3bn recorded in Q1.

It stated: “It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the Government incurred a subsidy obligation of ₦380.06 billion (52.51% of total NBET invoice) in 2024/Q2 (average of ₦126.69 billion per month),” NERC said.

“Between 2024/Q1 and 2024/Q2, the subsidy obligation of the government reduced by – ₦253.24 billion, from ₦633.30 billion (90.57% of total GenCo invoice) to ₦380.06 billion (52.51% of total GenCo invoice).

“The significant decrease in the subsidy obligation of the FGN is a result of the policy directive of the Government to implement reviews of tariffs charged to Band A customers while the tariffs for Band B-E customers remain frozen at the rates payable since December 2022.”