Electricity subsidy by the Nigerian government has increased to about N762bn in the first four months of 2025, according to the figures from various reports of the Nigerian Electricity Regulatory Commission.
The report by Punch newspaper on Friday showed that the subsidy on power was approximately N178bn in January and rose to N194bn in February, N192bn in March, and N194bn in April.
The report added that the Nigerian Government will therefore pay N198.42bn as electricity subsidy in April.
The report quoted the April Multi-Year Tariff Order released on Thursday by the Nigerian Electricity Regulatory Commission as saying that the Nigerian Government is still paying about half of the weighted average cost-reflective tariff for customers on Band B to E, while Band A customers pay over N209 per kilowatt-hour and customers on other bands pay an average of N116/kWh for electricity.
NERC said the approved end-user tariffs took effect from April 1, pursuant to Section 116 of the EA and extant regulations. It explained that the approved tariffs shall remain in force subject to monthly adjustments of pass-through indices, including inflation rates, naira/dollar exchange rates, and gas-to-power prices.
The report recalled that the Nigerian Government has said repeatedly that the monthly electricity subsidy was no longer sustainable. In April 2024, the Federal Government took the first step towards a cost-reflective tariff by removing customers on Band A feeders from its subsidy arrangement.
It added that the Minister of Power, Adebayo Adelabu, and the Special Adviser to the President on Energy, Olu Verheijen, had recently mulled a possible hike in electricity tariffs.
According to Verheijen, the N200bn monthly subsidy benefited the wealthiest 25 per cent of Nigerians rather than those who truly needed assistance.
GIK/APA