Electricity subsidies provided by the Federal Government rose to N199.64 billion in December 2024, according to data released by the Nigerian Electricity Regulatory Commission (NERC). This represents a 2.76 per cent increase from the N194.26 billion recorded in November.
The report, titled December 2024 Multi-Year Tariff Order, attributed the rise to factors such as an increased exchange rate pegged at N1,687.45 to the dollar, higher inflation at 33.9 per cent, and adjustments in available generation capacity.
Despite the changes, electricity tariffs across all customer categories remain unchanged. Band-A customers continue to pay N209/kWh, while tariffs for Bands B to E are still frozen at December 2022 rates.
Under the subsidy programme, Abuja DisCo customers are projected to receive N29.10 billion in December, up from N27.86 billion in November. Similarly, Ikeja Electric customers are expected to benefit from subsidies worth N26.68 billion during the same period.
On gas-to-power prices, NERC stated: “The review maintains the benchmark gas-to-power price of $2.42/MMBTU based on the established benchmark price by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).”
The Commission clarified that the approved tariffs would remain in force, subject to monthly adjustments based on inflation, exchange rates, and gas-to-power prices.
The increase in electricity subsidies follows the removal of petrol subsidies by President Bola Tinubu in May 2023. Since then, petrol prices have surged from approximately N189 per litre to over N1,300 per litre, placing additional pressure on the government to provide relief in other sectors.