FG splurges N375.8bn in 9-month electricity subsidy frenzy

In a staggering revelation, it has come to light that the Federal Government of Nigeria unleashed a financial tsunami, spending a jaw-dropping N375.8bn on electricity subsidies from January to September this year.

This mind-boggling figure, unveiled by the Nigerian Electricity Regulatory Commission (NERC), exposes a power subsidy extravaganza that has left the nation reeling.

As power consumers grappled with a total payment of N782.6bn for electricity during the same period, the government took center stage, generously subsidizing the electricity bill frenzy throughout the first, second, and third quarters of 2023. Shockingly, power distribution companies billed an astronomical N1.06tn nationwide, leaving consumers dazed by the hefty charges despite widespread blackouts across Nigeria.

The subsidy saga unfolded with the government’s financial theatrics, as the figures soared from N36bn in the first quarter to a staggering N135.2bn in the second quarter, culminating in an eye-watering N204.6bn in the third quarter. The fourth quarter remains a suspenseful cliffhanger, shrouded in anticipation.

Delving into the rationale behind this subsidy bonanza, the NERC, in its recently released third-quarter 2023 report, pointed to the absence of cost-reflective tariffs. In a daring move, the government stepped in to cover the glaring gap between the cost-reflective and allowed tariffs, resulting in a subsidy obligation of N204.59bn in the third quarter alone.

Consumers, grappling with the financial aftershocks, dutifully paid N782.56bn for electricity bills during the three quarters. However, this substantial sum was dwarfed by the whopping N1.06tn billed by power distribution companies, underscoring the financial strain on consumers despite the persistent blackouts.

The electricity subsidy saga unfolds as a riveting tale of financial acrobatics, leaving Nigerians on the edge of their seats, pondering the ramifications of this colossal power play.