Nigerian govt to continue electricity subsidy

The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Mr. Sanusi Garba, said on Wednesday the Federal Government would continue to subsidise electricity to ease the financial burden on Nigerians.

Garba, who stated this at a news conference in Abuja, said the commission had spelt out what the electricity distribution companies (DisCos) are allowed to charge in the new tariff if they are to remain in service.

He said: “The government has decided for now, arising from the cost of living crisis and so many others, to in the meantime continue to subsidise electricity.

“In the new tariff order just published by the commission, you will discover that the tariff is not going up but you will see what the Electricity Distribution Companies (DisCos) should be charging.

“You will also see in the tariff order the amount of subsidy the government will be providing to cover the gap between what they will charge and what they are allowed to charge.”

He said; NERC in the tariff included some provisions that would ensure that the DisCos pay what they are obligated to pay.

READ ALSO: Electricity subsidy costs Nigerian govt N36bn in three months —NERC

The NERC chairman pointed out that the Electricity Act signed by President Bola Tinubu in 2023 presented an opportunity for states to make laws and provide electricity in their franchise areas.

On metering, he said the commission had identified that the DisCos had challenges with finances to meter their customers.

Garba added: “The DisCos are in the business of buying electricity from the Nigeria Bulk Electricity Trading Company (NBET), so they are to pay.

“To reduce the rate of estimated billing, the commission created a framework under which the distribution companies can raise some amount of money to meter customers.

“So we decided that from the market revenues, we set aside a fixed amount that is dedicated for the provision of metering

“We are not saying that the money from the market every month is the money to buy a meter.

“It is a potential lender to raise a pathway to pay whatever loan DisCos are going to get to provide meters.”

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