The Nigerian Electricity Regulation Commission (NERC) has reported that the Federal Government disbursed a total of N36 billion to subsidize electricity usage across the country during the first quarter of 2023.

This information was disclosed in NERC’s quarterly report, which further indicated that the N36 billion subsidy was disbursed as monthly payments of N12 billion to the Nigerian Bulk Electricity Trading (NBET).

The responsibility of collecting revenues owed to generation companies and the Transmission Company of Nigeria from the Distribution Companies (DisCos) lies with NBET. NERC revealed that out of the N209.2 billion invoice issued to the DisCos, a sum of N141.5 billion was paid to NBET.

A breakdown of these payments revealed specific figures for each DisCo. The Abuja Distribution Company (DisCo) paid N20 billion from a billed amount of N32.8 billion, while the Benin DisCo paid N14.4 billion from an N17.8 billion invoice. Similarly, the Eko Disco paid N19.4 billion out of an N22.8 billion charge, and the Enugu DisCo settled N15.72 billion against its N20 billion invoice.

The Ibadan Disco contributed N17.5 billion from a bill of N24.5 billion, Ikeja DisCo paid N29.6 billion from an N35.9 billion invoice, Jos Disco paid N7 billion out of N8.8 billion, and Kaduna DisCo contributed N1.8 billion from an N15.3 billion invoice. Kano DisCo paid N6.1 billion against an N15 billion bill, while Port Harcourt DisCo paid N8.5 billion from an N14.5 billion invoice. Lastly, Yola Disco settled N899 million out of an N1 billion bill.

NERC clarified that the government’s intervention was necessary due to the absence of cost-reflective tariffs. In light of this, the government bridges the gap between the allowed tariff and the cost-reflective tariff through tariff shortfall funding. This funding is directed towards NBET invoices to be paid by the DisCos.

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