The Nigerian Electricity Regulatory Commission (NERC) has shared new information about how much money the government spent on electricity subsidies in December twenty twenty-four. According to the report, the government, led by President Bola Tinubu, paid one hundred and ninety-nine billion naira for electricity subsidies in December. This amount was higher than the one hundred and ninety-four billion, two hundred and sixty million naira spent in November.


This information was revealed in NERC’s December twenty twenty-four Multi-Year Tariff Order (MYTO) report, which was published on its website. The report explained how much customers in different groups paid for electricity and how much the government had to cover to make electricity affordable for many Nigerians.


Customers in Band A still paid two hundred and nine naira per kilowatt-hour (kWh) for electricity. For customers in Bands B to E, the tariffs have not changed since December twenty twenty-two. This means they continued to pay the same rates as before, and the government paid the difference to ensure electricity remained affordable for them.


In December, the government paid twenty-nine billion, one hundred million naira to help customers under the Abuja Electricity Distribution Company. It also paid twenty-six billion, six hundred and eighty million naira for customers under Ikeja Electric.


The increase in subsidy payments was caused by several factors. One major reason was a rise in the exchange rate, which was set at one thousand, six hundred and eighty-seven naira, forty-five kobo per dollar. Another reason was the inflation rate, which went up to thirty-three point nine percent. Changes in the capacity of power generation also played a role in the higher subsidy costs.


NERC kept the price of gas used for power generation at two dollars, forty-two cents per MMBTU. This price was set by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).


The report also said that electricity tariffs would continue to be adjusted every month based on important factors. These include changes in inflation, exchange rates, and the price of gas used to generate power. This means the government and customers might see changes in electricity costs depending on these factors.


This detailed report shows how the government is working to keep electricity affordable for Nigerians, even though it means spending a lot of money. The growing subsidy costs show how economic changes are making it more expensive to support electricity for the country.