Energy

NERC: FG paid N135.23bn for electricity subsidy in Q2 2023

The Nigerian Electricity Regulatory Commission (NERC) says the Federal Government paid a total of N135.23 billion to subsidise electricity consumption in the second quarter of 2023.

The NERC made this known in its Q2 2023 report and shared on its website on Wednesday, October 18.

It stated that N135.23 billion was spent by the federal government to plug the revenue generation shortfall in the power sector in the period under review.

The commission said this indicated an increase of N99.21 billion, representing 275 per cent compared to the N36 billion it paid in the first quarter of 2023.

The NERC noted that the government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is substantially higher than the N36.02 billion it incurred in 2023/Q1.

“The government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is an increase of N99.21 billion 275 per cent compared to the N36.02 billion incurred in 2023/Q1,” it said.

The commission stated that the subsidy was due to the absence of cost-reflective tariffs across all distribution companies, adding that the increase recorded in the period was a result of the government’s policy to harmonise exchange rate.

The NERC said on average, the subsidy obligation incurred by the government per month was N45.08 billion in Q2 2023.

The Star