FG announces ₦633 billion electricity subsidy in Q1 2024

In Q1 2024, the Federal Government spent more than ₦633.30 billion on power subsidies, according to data.

The Nigerian Electricity Regulatory Commission’s quarterly report shows a 150.5 percent rise from ₦252.76 billion in Q4, 2023.

The amount paid in the first three months of the year is more than the ₦628.61 billion paid from January to December 2023.

Subsidies totaled ₦633.30 billion, with ₦36.02 billion in the first quarter, ₦135.23 billion in the second, ₦204.6 billion in the third, and ₦252.76 billion in the fourth quarter of 2023.

The power market regulator attributed the increase to the government’s policy of harmonising currency rates, as well as the lack of cost-reflective prices across all electricity distribution providers.

The absence of cost-reflective rates across all DisCos resulted in a subsidy obligation of ₦633.30 billion in 2024/Q1, with an average of ₦211.10 billion per month.

According to the report, DisCos had a revenue shortfall of ₦291.62 billion compared to ₦368.65 billion billed to customers during the time.

Also, the total energy received by all DisCos was 7,171.93GWh, while the energy invoiced to end-user customers was 5,769.52GWh, resulting in an overall billing efficiency of 80.45%.

Ikeja DisCo generated the most revenue (₦57.88bn) during the time, followed by Eko DisCo with ₦48.74bn. Yola DisCo had the lowest income at ₦5.46bn.

In terms of revenue, Abuja DisCo collected ₦48.60bn, Ibadan DisCo collected ₦30.35bn, Benin DisCo collected ₦22.46bn, Enugu DisCo collected ₦21.24bn, and Port Harcourt DisCo received ₦20.39bn.

Kano DisCo got ₦13.62 billion, Jos DisCo ₦13.29 billion, and Kaduna DisCo ₦9.60 billion.