The Nigerian Electricity Regulatory Commission (NERC) has reported that the Federal Government disbursed a total of N135.23 billion to subsidize electricity consumption during the second quarter of 2023.
This substantial financial support was aimed at bridging the revenue shortfall in the power sector during the specified period.
NERC’s Q2 2023 report highlighted that the Federal Government allocated N135.23 billion to cover the revenue deficit in the power sector.
This marked a substantial increase of N99.21 billion, equivalent to 275 percent, compared to the N36 billion disbursed in the first quarter of 2023.
The report emphasized that the government’s substantial subsidy commitment in 2023/Q2 was primarily due to the absence of cost-reflective tariffs across all distribution companies.
Additionally, the surge in subsidy expenses during this period can be attributed to the government’s policy of harmonizing the exchange rate.
On average, the government incurred a monthly subsidy obligation of N45.08 billion during Q2 2023. This financial support demonstrates the government’s dedication to ensuring affordable electricity for the populace despite the challenges faced in the power sector.