In the first quarter of 2024, the Federal Government spent more than ₦633.30 billion on electricity subsidies, according to findings. This is a significant increase from the ₦252.76 billion spent in the fourth quarter of 2023, showing a rise of 150.5 percent.
The amount spent in the first three months of 2024 is higher than the total ₦628.61 billion spent throughout all of 2023. Breaking down the ₦633.30 billion spent in 2023, the subsidy costs were ₦36.02 billion in the first quarter, ₦135.23 billion in the second quarter, ₦204.6 billion in the third quarter, and ₦252.76 billion in the fourth quarter.
The Nigerian Electricity Regulatory Commission attributed this increase to the government’s policy of harmonising exchange rates and the lack of cost-reflective tariffs across all electricity distribution companies.
In terms of revenue collection during this period, Abuja DisCo collected ₦48.60 billion, Ibadan DisCo collected ₦30.35 billion, Benin DisCo collected ₦22.46 billion, Enugu DisCo collected ₦21.24 billion, and Port Harcourt DisCo collected ₦20.39 billion. Other collections included ₦13.62 billion from Kano DisCo, ₦13.29 billion from Jos DisCo, and ₦9.60 billion from Kaduna DisCo.
