The Nigerian government spent N628.61 billion on electricity subsidies while Electricity Distribution Companies (Discos) raked in N1.08 trillion in revenue in 2023, according to the latest report from the Nigerian Electricity Regulatory Commission (NERC).
The report detailed quarterly subsidies of N36.02 billion, N135.23 billion, N204.6 billion, and N252.76 billion for the first through fourth quarters, respectively.
Discos earned N247.09 billion, N267.86 billion, N267.61 billion, and N294.95 billion over the same periods.
NERC highlighted that the government’s subsidy obligations stemmed from non-cost-reflective tariffs, with Q4 2023 alone seeing N252.76 billion in subsidies due to policy changes harmonizing exchange rates while keeping customer tariffs at December 2022 levels.
