In the first quarter of 2023, the Nigerian Electricity Regulation Commission (NERC) unveiled its quarterly report disclosing that the federal government allocated N36 billion to subsidize electricity consumption.

This amount equated to a monthly payment of N12 billion, channeled to the Nigerian Bulk Electricity Trading (NBET).

NERC also revealed that out of the N359.3 billion billed to customers, the 11 Distribution Companies (DisCos) amassed N247 billion in total revenue during the same period.

The government’s intervention was prompted by the lack of cost-reflective tariffs, resulting in the government bridging the gap between cost-reflective and allowed tariffs through tariff shortfall funding, which was directed to pay NBET invoices covered by DisCos.”