The Nigerian government subsidized electricity costs by N471.69 billion in the fourth quarter of 2024, according to the Nigerian Electricity Regulatory Commission (NERC). This subsidy accounted for 57% of the total energy generated during the period, following the suspension of the end-use customer tariff, which remained at July 2024 rates.
NERC’s “Quarterly Report 2024” revealed that the Nigerian Bulk Electricity Trading (NBET) invoice payable by Distribution Companies (DisCos) for Q4 2024 stood at N360.97 billion. The Federal Government took responsibility for a substantial portion of the costs, amounting to N471.69 billion, in the form of a subsidy. This action arose from the freezing of end-use customer tariffs at the rates that were set for July 2024.
In addition to the subsidy, the report noted that both domestic and international bilateral customers made payments towards outstanding Market Operator (MO) invoices from previous quarters. International bilateral customers contributed $2.98 million, while domestic customers paid N135.81 million during Q4 2024.
This significant government intervention underscores the continued effort to stabilize the country’s electricity sector amidst tariff freezes and financial challenges faced by electricity distribution companies.
