The newly released report, titled ‘December 2024 Multi-Year Tariff Order’, revealed that electricity subsidies increased by 2.76 per cent, up from N194.26 billion in November.
The recently released report titled “Multi-Year Tariff Order December 2024” revealed that Electricity subsidies increased by 2.76% from N194.26 billion in November.
NERC attributed the increase to factors such as the appreciation of the pegged exchange rate at N1,687.45 to the dollar, the increase in inflation to 33.9 percent and adjustments in available generation capacity. These changes necessitate a minor revision.
Tariffs maintained
The report shows that the federal government maintained electricity tariffs for all categories of customers. French Group A customers will continue to pay N209/kWh, while tariffs for Bands B to E have been frozen at the rates set in December 2022.
According to the policy, the government is expected to pay N29.10 billion in subsidies to Abuja Disco consumers, an increase from November’s N27.86 billion. Similarly, Ikeja Electric consumers will receive N26.68 billion in subsidies.
Nigeria’s electricity customer base to reach 12.33 million in Q1 2024
Gas to wholesale electricity prices
Regarding gas to electricity prices, NERC said:
“The revision maintains the effective reference gas price at $2.42/MMBTU based on the reference gas price set in force by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).”
NERC also clarified that “the approved tariffs remain in force, subject to monthly adjustments to transmission indices, including inflation rate, NGN/dollar exchange rate and gas-electricity prices.”
