The Nigerian Electricity Regulatory Commission (NERC) on Wednesday said that the Federal Government (FG) paid a total of ₦135.23 billion to subsidise electricity consumption in the second quarter of 2023.
This was made known in the commission’s Q2, 2023 report pasted on its website in Abuja. NERC said that the ₦135.2 billion was spent by the Federal Government to plug revenue generation shortfall in the power sector in the period under review.
It said that this indicated an increase of ₦99.21 billion, representing 275% compared to the ₦36 billion it paid in the Q1 of 2023. The report stated that the government incurred a subsidy obligation of ₦135.23 billion in 2023/Q2, which is substantially higher than the ₦36.02 billion it incurred in 2023/Q1.
”The government incurred a subsidy obligation of ₦135.23 billion in 2023/Q2, which is an increase of ₦99.21 billion 275% compared to the ₦36.02 billion incurred in 2023/Q1,” it said.
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The commission stated that the subsidy was due to the absence of cost-reflective tariffs across all distribution companies. It said that the increase recorded in the period was a result of the government’s policy to harmonise exchange rate.
The report said that on the average, subsidy obligation incurred by the government per month was ₦45.08 billion in Q2 2023.
NEWS AGENCY OF NIGERIA
 on Wednesday said that the Federal Government (FG) paid a total of ₦135.23 billion to subsidise electricity consumption in the second quarter of 2023.){kind=link}