AGS NEWS – The Federal Government spent N628.61 billion on electricity subsidies in 2023, while power distribution companies (Discos) collected a total revenue of N1.08 trillion, according to data from the Nigerian Electricity Regulatory Commission (NERC).

Subsidies on electricity increased each quarter last year, totaling N36.02 billion in Q1, N135.23 billion in Q2, N204.6 billion in Q3, and N252.76 billion in Q4.

During these quarters, Discos collected revenues of N247.09 billion, N267.86 billion, N267.61 billion, and N294.95 billion, respectively.

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The rise in Disco revenue has led to calls for improved service from these companies, as many consumers are dissatisfied with the current power supply.

In the absence of cost-reflective tariffs, the government covers the difference between the actual cost and the allowed tariff through subsidies.

NERC highlighted that the government’s subsidy obligation increased due to policies aimed at harmonizing exchange rates, while maintaining end-user tariffs at 2022 levels.

The subsidy for Q4 2023 was N252.76 billion, an average of N84.25 billion per month, up from N204.6 billion in Q3.

Power consumers have criticized the Discos for their inability to improve service despite their increased revenue.

Uket Obonga, National Secretary of the Nigeria Electricity Consumer Advocacy Network, stated that while Discos are making money, they are not expanding their networks to meet customer demands.

NERC’s data showed that Discos’ collection efficiency dropped slightly in Q4 2023, with a total revenue of N294.95 billion out of N399.69 billion billed, a 73.79% collection efficiency, down from 76.56% in Q3.

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The commission’s reports indicated that Discos earned N247.09 billion, N267.86 billion, N267.61 billion, and N294.95 billion in the first, second, third, and fourth quarters of 2023, respectively.

Consumers continue to voice concerns over the poor power supply, despite the Discos’ significant revenue gains.