FG Spent N36bn For Electricity Subsidy in 3 Months – NERC
The Nigerian Electricity Regulation Commission (NERC), in its quarterly report, revealed that the federal government paid N36 billion to subsidize electricity consumption in the first quarter of 2023.
The monthly payment to the Nigerian Bulk Electricity Trading (NBET) was in the sum of N12 billion.
The NBET, which is tasked with collecting payments owed by the DisCos to the generation firms and the Transmission Company of Nigeria, received the sum of N141.5 billion. The N209.2 billion invoice that was issued to the DisCos was used to pay the bill.
From the N359.3 billion in charges to customers, the 11 Distribution Companies (DisCos) totaled N247 billion in revenue in the first quarter.
According to a breakdown, Benin DisCo paid N14.4 billion from its N17.8 billion bill, Eko Disco paid N19.4 billion from its N22.8 billion charge, and Enugu DisCo paid N15.72 billion from its N20 billion. Abuja DisCo paid N20 billion from the N32.8 billion it was billed.
Ikeja DisCo paid N29.6 billion from the N35.9 billion given to it, and Jos DisCo paid N7. billion from the 8.8 billion it was billed, Kaduna DisCo paid N1.8 billion from the N15.3 billion given to it, Kano DisCo paid N6.1 billion from its N15 billion, Port Harcourt DisCo paid 8.5 billion from its N14.5 billion, and Yola DisCo paid N899 million from the N1 billion it was billed.
According to NERC, the federal government stepped in because it “undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding” in the absence of cost-reflective tariffs. The NBET invoices that are due from DisCos are covered by this funding.