FG’s electricity subsidy burden to hit N1.6trn in 2024
The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba, Wednesday, disclosed that a total of N 1.6 trillion will be required to subsidise electricity in 2024.
Garba, who spoke at a media parley with power correspondents in Abuja to herald the new tariff regime, noted that the projected amount would gulp about N30 billion a month.
The NERC boss, who spoke passionately about what the new review said: “I want to correct the impression that for one year we haven’t had any review. The reality is that the reviews have been done but what happened is what you pay as a customer is a blend of regulation and policy.
“If we have determined that you should be paying N150 and the federal government says you should pay N60 and it will pay the difference. Then that is what it is, and the government would now provide the money.
“We have our projection on what will be required if the government does nothing tariff, and it will be N1.6trn to fund electricity, and that is N30 billion a month. One of the new things in tariff order is, and to avoid rate shock, we will now be doing the minor tariff review very frequently, like every month’’.
However, data obtained from the commission shows that Abuja Electricity Distribution Company (AEDC), subsidy annually stands at N233.32 billion, an average of N19.44bn monthly.
Also, Enugu Electricity Distribution Plc (EEDC) annually subsidy goes for N128.92bn at an average of N10.74bn monthly.
