bloomshorts Massive Subsidy Shortfall in Power Sector
The Federal Government’s commitment to the power sector has resulted in a gross electricity subsidy tariff shortfall of ₦1,949 billion in 2024, as per the Nigerian Electricity Regulatory Commission’s latest report.
Quarterly Breakdown Reveals Fluctuating Deficits
Analysis shows a rollercoaster of tariff shortfalls throughout the year, starting at ₦633 billion in Q1, dipping to ₦380 billion in Q2, then climbing to ₦464 billion and ₦471 billion in Q3 and Q4 respectively.
Discos’ Revenue Surge Amidst Challenges
Despite a 40% year-on-year revenue increase in April 2025, with total billing reaching ₦257.57 billion, collection efficiency and energy delivery issues persist, highlighting the sector’s complex challenges.
Tariff Reforms and Their Impact
The significant adjustment in tariffs for Band ‘A’ customers, from ₦66/kWh to approximately ₦209/kWh, aims to reflect the true cost of service and reduce subsidy burdens, yet questions about affordability and service quality remain.
