The Nigerian Electricity Regulatory Commission (NERC) has revealed that the government led by President Bola Tinubu paid ₦199 billion as an electricity subsidy in December 2024. This marks an increase compared to ₦194.26 billion in November.
The information was disclosed in NERC’s December 2024 Multi-Year Tariff Order (MYTO) report, published on its official website.
According to the report, Band-A customers continued to pay ₦209/kWh, while tariffs for customers in Bands B to E remained frozen at December 2022 rates.
The Nigerian government is projected to pay ₦29.10 billion in subsidies for consumers under the Abuja Electricity Distribution Company (DisCo) and ₦26.68 billion for those under Ikeja Electric.
The rise in subsidies has been attributed to an increased exchange rate pegged at ₦1,687.45 per dollar, an inflation rate of 33.9%, and adjustments in available power generation capacity.
NERC also retained the benchmark gas-to-power price at $2.42/MMBTU, as determined by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Meanwhile, the Commission stressed that tariffs would remain subject to monthly adjustments based on key indicators, including inflation, exchange rates, and gas-to-power prices.
