FG subsidises electricity with N135.23bn in Q2, 2023 – NERC
The Nigerian Electricity Regulatory Commission (NERC) has revealed that the Federal Government (FG) provided a total of N135.23 billion in subsidies for electricity consumption in the second quarter of 2023.
According to the Q2, 2023 report published on NERC’s website, the FG spent N135.23 billion to address the revenue generation shortfall in the power sector during that period.
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This amount marks a significant increase of N99.21 billion, which represents a 275% rise compared to the N36 billion spent in the first quarter of 2023.
The report highlights that the government incurred a subsidy obligation of N135.23 billion in Q2 of 2023, significantly surpassing the N36.02 billion incurred in Q1 of the same year.
NERC explains that the subsidy is necessary due to the absence of cost-reflective tariffs across all distribution companies. The increase in the subsidy during this period is attributed to the government’s policy to harmonize the exchange rate.
On average, the government incurred a subsidy obligation of N45.08 billion per month during Q2, 2023.
This significant subsidy by the Federal Government is aimed at ensuring affordable and accessible electricity for the citizens.
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