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NERC: FG Spent ₦‎171.3 Billion On Electricity Subsidy In Six Months



The Nigerian Electricity Regulatory Commission (NERC) says the federal government paid a total of N171.25 billion as electricity subsidy in the first six months of 2023.

NERC, in its second-quarter (Q2) report dated October 17, 2023, said the subsidy was due to the absence of cost-reflective tariffs across all distribution companies.

During the first half (H1) of the year, the commission reported a total subsidy of N171.25 billion, with N36.02 billion incurred in the first quarter (Q1) and N135.23 billion in Q2.

According to the commission, the increase in Q2 can be primarily attributed to the government’s policy of harmonising exchange rates.

“In the absence of cost-reflective tariffs, the government undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding,” the report said.


“This funding is applied to the Nigerian Bulk Electricity Trading (NBET) invoices that are to be paid by DisCos.

“The amount to be covered by the DisCo is based on the allowed tariff determined by the Commission and set out as their Minimum Remittance Obligation(MRO) in the periodic Tariff Orders issued by the Commission.

“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is an increase of N99.21 billion (+275%) compared to the ₦36.02 billion incurred in 2023/Q1.”

The report also highlighted that, on average, the subsidy obligation incurred by the government per month was N45.08 billion in Q2 2023.

The NERC said the government’s subsidy obligation meant that in 2023/Q2, Discos were only expected to cover 53.25 percent of the total invoice received from NBET.



According to the NERC, DisCos revenue for Q2 stood at N267.86 billion achieving a 75.5 percent collection efficiency.

In Q1, the collection efficiency stood at 68.75 percent.

Collection efficiency is the ratio of the amount that has been collected from customers relative to the amount billed to them by the DisCos.

For example, collection efficiency of 70 percent implies that for every N100 worth of energy billed to customers by DisCos, approximately N30 remained unrecovered from the billed customers.


NERC said: “The total revenue collected by all DisCos in 2023/Q2 was N267.86 billion out of the N354.61 billion that was billed to customers.”

“This translates to a collection efficiency of 75.54%. The DisCos overall collection efficiency increased by 6.79 percent point from 68.75% recorded in 2023/Q1.

“While the total collections increased by 8.41% (compared to N247.09 billion in 2023/Q1), the total billings declined by -1.33% (compared to N359.38 billion in 2023/Q1).”

The report also shows that all other discos apart from Yola discos recorded an improvement in collection efficiency in Q2.

The top performing DisCos were Kaduna, Ikeja and Enugu with (44.27 percent to 59.38 percent ), (87.19 percent to 95 percent ) and (68.55 percent to 76.29 percent) increases in collection efficiency respectively.


Yola DisCo had a decrease from 45.71 percent to 45.27 percent in collection efficiency within the same period.


Refineries Are Not Created To Reduce Fuel Price– Kyari



Forty eight hours after being summoned by the Senate, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, has now appeared before the joint committee on appropriations.

The Senate had issued a 24-hour ultimatum on Wednesday to the NNPCL boss after an observations that he had in previous occasions, shunned summons by the Senate to appear before its ad-committee probing over 11 trillion naira expenditure on turn around maintenance of refineries in the country between 2010 and 2023.

Responding to questions by the senate committee on appropriations on the potential drop in pump price of petroleum owing to the expected functionality of refineries, Kyari clarified his comment after he was interrogated again. He explained that it might be possible to have a reduction, but it is not the main objective of the refineries.

He buttressed that maintaining the energy security target has fostered the confidence that in 2024, Nigeria will become a net exporter of petroleum products.

The NNPCL boss affirmed that no subsidy is charged to the federation, adding that the NNPC has contributed 4.45 trillion naira as direct revenue into the federation in a combination of taxes, royalties and dividends and paid 406 billion naira as dividend to Federal Government’s account from July 2023.


According to him, Nigeria does not have credible data for PMS consumption in the country because of the absence of the instrument to measure.

The Chairman of the Senate Appropriation Committee, Senator Adeola Olamilekan, had on Wednesday, directed Kyari to appear before the committee in 24 hours.

Olamilekan, who asked Kyari to appear in company of the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), warned that failure to appear undermines the legislature and sabotages the process.

They are required to present the list of all individual companies operating with OML licenses in Nigeria as well as total production output approved on a daily basis.

The lawmaker expressed concerns that some of the revenues required to drive the 2024 budget was attributed to the NNPCL, which according to him, was owned by the Federal Government and responsible to it, and by extension the three arms of government.

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Tinubu Should Review RECs Appointment – Ex-INEC Chairman, Jega



A former Chairman of the Independent National Electoral Commission (INEC), Attahiru Jega, has called on President Bola Tinubu to review the appointments of the commission’s Resident Electoral Commissioners (RECs).

Jega said Tinubu should review their appointments due to concerns that some of the RECs are partisan.

About a month ago, Tinubu had nominated 10 RECs, with the Senate confirming their appointments.

However, some of the RECs have been accused of being involved in partisan politics.

Reacting to the criticisms, Jega said the non-review of their appointment sends the wrong signal.


Featuring on Channels Television’s Politics Today on Monday, Jega said: “I think there is no doubt that if the President were listening, my advice would be to immediately review the appointment of the Resident Electoral Commissioners that was passed by the Senate recently.

“It’s very, very important because clearly, not only does it send a wrong signal about the government’s intention to improve the integrity of elections, it also suggests, you know, that there is indifference with regards to protecting the independence and impartiality of the election management body.

“I would want to believe that Mr President was either misinformed or is not really furnished with all the necessary details with regards to these appointments.”

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