The Nigerian Electricity Regulatory Commission (NERC) has unveiled the 2024 electricity tariffs, showcasing N1.6 trillion subsidy by the Federal Government to prevent tariff hikes.
Despite industry indicators signaling a natural rise in tariffs, the NERC retained 2023 rates, with the government covering the difference. For example, Ikeja, Benin, and Abuja Discos had cost-reflective tariffs of N112.10/kWh, N126/kWh, and N120.88/kWh approved, but the regulator set lower rates at N56.6/kWh, N60.1/kWh, and N63.24/kWh, respectively.
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NERC emphasized that the subsidy, hitting N1.6 trillion for the year, is unsustainable, echoing concerns raised by Vice Chairman Musiliu Oseni, who noted its disproportionate benefit to the affluent.
Chairman Sanusi Garba clarified that ongoing reviews were happening, but the government’s subsidy policy dictated the final rates. NERC revealed that four states have enacted their electricity laws, with four others finalizing theirs, signaling a potential shift in energy regulation.
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Despite the subsidy, concerns about its long-term viability persist, raising questions about the feasibility of maintaining such financial support amid rising economic challenges.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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