FG subsidised electricity with N471.7bn in Q4 2024
By Seun Ibiyemi
The Federal Government of Nigeria (FGN) provided a ¦ 471.69 billion electricity subsidy in the fourth quarter of 2024 (Q4 2024), according to the Nigerian Electricity Regulatory Commission (NERC).
This subsidy accounted for 57 per cent of the total energy generated during the period, covering the cost difference arising from the suspension of end-use customer tariffs at the July 2024 rates.
NERC disclosed these details in its “Quarterly Report 2024”.
The report stated: “The NBET invoice payable by the DisCos for 2024/Q4 amounted to only ¦ 360.97 billion, as the Federal Government assumed responsibility for approximately 57 per cent (¦ 471.69 billion) of total generation costs through subsidies, following the freezing of end-user tariffs at July 2024 rates.”
Additionally, NERC highlighted that local and international bilateral customers settled outstanding Market Operator (MO) invoices from previous quarters during Q4 2024.
According to the report: International bilateral customers remitted $2.98 million. Domestic bilateral customers paid ¦ 135.81 million.
NERC revealed that electricity distribution companies (DisCos) collected ¦ 509.84 billion in revenue during Q4 2024, out of the ¦ 658.40 billion billed to consumers.
This translates to a collection efficiency of 77.44 per cent.
By comparison, in Q3 2024, DisCos collected ¦ 466.69 billion from the ¦ 626.02 billion billed, reflecting a collection efficiency of 74.55 per cent.
The 77.44 per cent recorded in Q4 2024 represents an increase of 2.89 percentage points (pp) over the previous quarter’s 74.55 per cent efficiency.
As observed in Q3 2024, Eko (90.00 per cent) and Ikeja (82.63 per cent) DisCos achieved the highest collection efficiencies in Q4 2024.
Conversely, Jos DisCo recorded the lowest efficiency at 49.68 per cent.
A comparative assessment of DisCos’ performance showed that eight DisCos improved their collection efficiency between Q3 2024 and Q4 2024. The most significant gains were: Yola DisCo: +13.93 percentage points; Kano DisCo: +9.88 percentage points.
However, three DisCos experienced declines in efficiency, with the most notable drops recorded by: Jos DisCo: -3.61 percentage points; Abuja DisCo: -3.39 percentage points.
NERC’s findings underscore the ongoing efforts to enhance revenue collection within Nigeria’s electricity sector while addressing subsidy concerns and tariff challenges.
