The Nigerian Electricity Regulatory Commission (NERC) has revealed that the Federal Government spent ₦1.94 trillion on electricity subsidies in 2024.
This disclosure was made in NERC’s latest report, which shows that the subsidy was necessary to bridge the gap between the actual cost-reflective tariff and the amount paid by consumers.
The Commission noted that the government covered a significant portion of the cost for most electricity consumers, especially those under the lower service bands, in a bid to ease the financial burden on citizens amid economic challenges.
NERC emphasized that without these subsidies, electricity tariffs would have been much higher, particularly due to rising generation and operational costs.
The Commission, however, reiterated the need for gradual transition toward full cost-reflective tariffs to ensure long-term sustainability of the power sector.
