The Federal Government has suspended the monthly review of electricity tariffs as the power subsidy climbs to ₦768.68 billion in four months.
This decision comes amid concerns over the financial strain on the power sector and the lack of budgetary provision for tariff shortfalls in the 2025 budget.
The Nigerian Electricity Regulatory Commission (NERC) had previously adjusted end-users’ tariffs monthly, factoring in the prevailing economic situation, including inflation, foreign exchange, and gas prices. However, the Federal Government has now halted this practice.
Electricity generation, which was promised to reach 6,000 megawatts by the end of 2024, currently hovers between 2,000MW and 4,100MW.
The subsidy for the power sector is expected to reach ₦2.3 trillion by the end of 2024, with no budgetary provision to cover this debt.
Get instant and latest news updates via Our WhatsApp Community, X/Twitter or Google News online channel.