The Federal Government has paid N135.23 billion to subsidize electricity usage in the second quarter of 2023, latest report by the Nigerian Electricity Regulatory Commission (NERC) has shown.
According to NERC, the FG spent N135.2 billion in the period under review to remedy income generation shortfalls in the power sector.
It stated that this represented a N99.21 billion increase, or 275 percent, over the N36 billion it paid in the first quarter of 2023.
According to the study, the government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is significantly greater than the N36.02 billion incurred in 2023/Q1.
”The government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is an increase of N99.21 billion 275 per cent compared to the N36.02 billion incurred in 2023/Q1,” it said.
The commission stated that the subsidy was due to the absence of cost-reflective tariffs across all distribution companies.
It said that the increase recorded in the period was a result of the government’s policy to harmonise the exchange rate.
The report said that on average, subsidy obligation incurred by the government per month was N45.08 billion in Q2 2023.