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How FG paid N199billion as electricity subsidy for Nigerians in December

The Nigerian Electricity Regulatory Commission (NERC) has stated that the government of Nigeria paid N199 billion as electricity subsidy for December 2024, up from N194.26 billion in November.

The disclosure was made in NERC’s December 2024 Multi-Year Tariff Order (MYTO) report, published on its website.

According to the report, Band-A customers continued to pay N209/kWh, while tariffs for customers in Bands B to E remained frozen at December 2022 rates.

However, the Nigerian government is expected to pay N29.10 billion in subsidies for consumers under Abuja Electricity Distribution Company (DisCo) and N26.68 billion for those under Ikeja Electric.

The rise in subsidies is attributed to a higher exchange rate pegged at N1,687.45 per dollar, an inflation rate increase of 33.9%, and adjustments in available power generation capacity.

NERC also retained the benchmark gas-to-power price at $2.42/MMBTU, as determined by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Meanwhile, the Commission noted that tariffs would remain subject to monthly adjustments based on key indicators, including inflation, exchange rates, and gas-to-power prices.

TruetellsNigeria

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