The Nigerian Government has paid a sum of ₦633.30 billion in electricity subsidies in the first quarter of 2024, according to the Nigerian Electricity Regulatory Commission’s quarterly report.
This amount represents a 150.5% increase from the ₦252.76 billion paid in the fourth quarter of 2023.
The rise in subsidies is attributed to the government’s policy to harmonize exchange rates and the lack of cost-reflective tariffs across all electricity distribution companies.
Despite the subsidy, distribution companies (DisCos) recorded a revenue shortfall, collecting only ₦291.62 billion out of the ₦368.65 billion billed to customers.
