FG says it’ll continue electricity subsidy to ease burden on Nigerians

The Nigerian government has announced that it will continue to subsidize electricity in order to ease the financial burden on its citizens in the face of economic challenges.

Sanusi Garba, the chairman of the Nigerian Electricity Regulatory Commission (NERC), made this announcement during a news conference held in Abuja on Wednesday.

“Government has decided for now, arising from the cost of living crisis and so many others, to in the meantime continue to subsidise electricity,” Garba said.

“In the new tariff order just published by the commission, you will discover that tariff is not going up but you will see what the Electricity Distribution Companies (DisCos) should be charging.

“You will also see in the tariff order the amount of subsidy the government will be providing to cover the gap between what they will charge and what they are allowed to charge.”

According to him, the new tariff covers the prices that DisCos are allowed by law to charge in order to continue operating.

Garba stated that NERC placed several clauses into the tariff to ensure that DisCos pay what they are supposed to pay.

“The DisCos are in the business of buying electricity from the Nigeria Bulk Electricity Trading Company (NBET), so they are to pay,” he said.

The NERC chairman claims that states are now able to enact laws and oversee power in their franchise regions thanks to the power Act, which President Bola Tinubu signed into law in 2023.

According to him, the commission is dedicated to collaborating with the states to guarantee that the public utilities that are now in place are supported in order to provide services to Nigerians and are put to good use.

About metering, Garba stated that NERC had found that DisCos have financial difficulties when it comes to metering their customers.

According to Garba, metering rates are negatively impacted by DisCos’ incapacity to obtain the necessary funds from banks.

“To reduce the rate of estimated billing, the commission created a framework under which the distribution companies can raise some amount of money to meter customers,” Garba said.

“So we decided that from the market revenues, we set aside a fixed amount that is dedicated for the provision of metering
“We are not saying that the money from the market on a monthly basis is the money to buy a meter.”