FG Set To Implement New Tariff Rate in July As Nigerians Pay Over N247bn for Electricity in 3 Months
- The National Bureau of Statistics has revealed that Nigerians spent over N247 billion on electricity in the first quarter of 2023
- It was also revealed that the number of electricity customers has increased amid plans by the federal government to increase tariffs from July
- Report says government currently pays over N500 billion subsidy monthly for electricity consumed by Nigerians
The National Bureau of Statistics has revealed that in the first three months of 2023 (January to March), Nigerians paid N247.33 billion for electricity to 11 distribution companies (DisCos).
The bureau stated this in its Electricity Report for Q1 2023 released on its website and obtained by Legit.ng.
Source: Twitter
According to the report, the electricity bill paid in Q1 2023 is a 5 percent improvement when compared to the N232.32 billion collected in Q4 2022.
It also represents a 20.81 percent increase in revenue for DisCos compared to the N204.74 billion recorded in Q1 2022.
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Electricity customers in Nigeria
In the report, NBS also disclosed that the total number of electricity customers in the country has increased to 11.27 million as of the end of March 2023.
This is a 1.89 percent increase compared to 11.06 million in Q4 2022. and also 5.99 percent jumo from the 10.63 million customers reported in Q1 2022.
However, out of the total number of customers, only 5.31 million are metered, indicating a growth of 3.61 percent from the 5.13 million recorded in the preceding quarter.
Increase in electricity tariff
In another development, the federal government is considering increasing the electricity tariff by 40% starting in July 2023.
Legit.ng reported that this move will end all forms of subsidy in the electricity and energy sectors in the country.
The Guardian reports that the Nigerian government currently pays a monthly electricity subsidy of N50 billion.
The decision to end the electricity subsidy has drawn strong criticism from the Nigeria Labour Congress (NLC), which described it as insensitive and callous.
The NLC expressed concern about the impact of the proposed tariff hike on Nigerians who are already grappling with rising costs of living following the removal of fuel subsidy and naira floating.
UBA set to recover over N56bn debt with sale of Abuja Electricity Company
Meanwhile, in another report, UBA is planning to sell the Abuja Electricity Distribution Company (AEDC) to recover a debt of N56bn
The bank took over AEDC in December 2021 after its major stakeholder, Kann Consortium, defaulted on a loan
The planned sale has led to an increase in UBA's share price, as investors see it as a positive strategic move
Source: Legit.ng
