Tinubu’s govt to pay N1.6 trillion electricity subsidy in 2024

The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba has announced that the Bola Tinubu- led federal government is projected to pay N1.6 trillion in electricity subsidy in 2024.

During a press briefing in Abuja, Garba cited inflation and forex unification as contributing factors to the increased subsidy, predicting a monthly payment of N120 billion.

He said the anticipated subsidy represents a substantial increase of over N500 billion compared to the subsidy paid in 2023, which was reported to be N700 billion.

According to him, the government’s decision to continue subsidizing electricity is due to the country’s economic challenges and cost of living crises.

Garba clarified that, despite the new tariff order introduced by NERC, actual tariffs are not increasing, and the government’s subsidy will cover the gap between what distribution companies (DisCos) are allowed to charge and the market reflective tariff.

”The new order aims to enhance transparency, allowing the public to view the approved tariffs and the corresponding government subsidy,” he stated.

To address the funding challenges faced by DisCos in providing meters, Garba mentioned that the government is implementing measures to facilitate access to long-term funds for metering initiatives.

”Additionally, NERC will conduct more frequent minor reviews, possibly every month, to ensure market-reflective tariffs in response to economic changes,” he added.