New data reveals the federal government spent a whopping N375.8 billion subsidizing electricity from January to September 2022, according to reports by the Nigerian Electricity Regulatory Commission.
NERC stated consumers paid N782.6 billion in electricity bills nationwide during this period, while DisCos issued total bills of N1.06 trillion.
Giving reasons for ongoing subsidies, NERC said “In the absence of cost-reflective tariffs, government funds the gap through tariff shortfall payments to NBET.”
According to NERC Chairman Joseph Yaro “Rising subsidies show the urgent need for market reforms to achieve financial viability.”
Payment data showed consumers remitted N247 billion, N267.8 billion and N267.6 billion in the first three quarters respectively, totaling N782.6 billion paid.
As government spending on the sector rises without a sustainable solution, experts have called for increased private sector participation and removal of distortive policies to transition Nigeria towards a stable, affordable power supply.