The Federal Government incurred a gross tariff subsidy shortfall of ₦1.949 trillion in 2024, according to the Nigerian Electricity Regulatory Commission (NERC). The subsidy arose from the gap between the actual cost of electricity supply and the frozen customer tariffs, maintained at 2022 rates despite rising market costs driven by FX fluctuations and inflation.
NERC’s 2024 report shows that this figure represents 62.59% of NBET’s total invoice for the year, with an average monthly subsidy of ₦161.85 billion. The first quarter alone accounted for ₦633.30 billion — a 303% rise from 2023’s quarterly average.
The FG introduced a tariff hike in April 2024 for Band A customers, aiming to reduce the subsidy burden by up to ₦1.14 trillion annually.
