FG Discloses Amount Paid to IE, Eko DisCo, Others as Subsidy to Supply Electricity in 2023
- The Nigerian government has disclosed that it paid N136 billion as electricity subsidy in 2023
- The Nigerians Electricity Regulatory Commission (NERC) said the amount was due to a lack of cost-reflective tariffs
- NERC said electricity consumers in Nigeria were billed N1.06 trillion but paid N782.6 billion as electricity bills in the first nine months of this year
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The Nigerian government said it spent N375.8 billion on electricity subsidies between January and September this year, while consumers paid about N782.6 billion for the commodity in the same period.
The Nigerian Electricity Regulatory Commission (NERC) disclosed this on Sunday, December 17, 2023, in Abuja, saying that the government subsidized electricity in this year's first, second and third quarters.
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FG pays N135.2 billion in 9 months to DisCos, GenCos
During the review period, NERC also revealed that power distribution companies charged electricity consumers a total of N1.06 trillion nationwide.
In the first quarter of this year, NERC said the Nigerian government subsidized power by N36 billion and N135.2 billion in Q2 and increased to N204.6 billion in Q3.
The electricity regulator said that in the absence of cost-reflective tariffs, the federal government covered the gap in the form of tariff lapses and shortfalls in funding.
NERC said:
"The amount to be covered by the Disco is based on the tariff that they are allowed to charge and set out as their Minimum Remittance Obligation in the periodic Tariff Orders issued by the Commission.
Ikeja Electric, Eko DisCos, and others charged consumers N1.06 trillion
During the review period, power consumers in Nigeria paid N240.9 billion in Q1, N267.87 billion in Q2, and N267.61 billion in Q2, totaling about N782.56 billion.
Distribution companies charged electricity consumers N249.55 billion, N354.61 billion, and N359.38 billion in the first, second, and third quarters respectively.
Punch reports that the total revenue collected by all DisCos in Q3 of 2023 amounted to 76.56%, representing an increase of 1.02 basis points compared to the year's second quarter with 75.54%.
Nigeria gets $750m World Bank loan for electricity, replace diesel generators in homes, businesses
Legit.ng reported that the World Bank has approved another $750 million loan for the Nigeria Distributed Access via Renewable Energy Scale-up (DARES) project.
The bank said in a statement on Saturday, December 16, 2023, that the project would leverage over $1 billion of private capital and significant parallel financing from development partners.
The loan is usually given to the poorest countries in the world.
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Source: Legit.ng
