The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the President Bola Tinubu-led government paid N199billion as electricity subsidy for December 2024.
This amount is an increase from the N194.26 billion paid in November.
According to NERC’s December 2024 Multi-Year Tariff Order (MYTO) report, the rise in subsidies is attributed to a higher exchange rate pegged at N1,687.45 per dollar, an inflation rate increase to 33.9%, and adjustments in available power generation capacity.
The report also revealed that Band-A customers continued to pay N209/kWh, while tariffs for customers in Bands B to E remained frozen at December 2022 rates.
Additionally, 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.
NERC retained the benchmark gas-to-power price at $2.42/MMBTU, as determined by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Commission noted that tariffs would remain subject to monthly adjustments based on key indicators, including inflation, exchange rates, and gas-to-power prices.
