JUST N36 BILLION WAS PAID BY FG TO NERC IN THREE MONTHS FOR ELECTRICITY SUBSIDIES.

Tunji Wusu –

The Federal Government reportedly paid N36 billion to subsidize energy usage in the first quarter of 2023, according to the Nigerian energy Regulation Commission (NERC).

DailyTrust claims that in its quarterly report, NERC stated that the sum was equal to the N12 billion monthly payment made to the Nigerian Bulk Electricity Trading (NBET) in Nigeria. The amount of N141.5 billion was paid to the NBET from the N209.2 billion invoice sent to the DisCos, which was charged with collecting the income owed to generator companies and the Transmission Company of Nigeria (TCN) from the DisCos.

The government will fill the resulting difference (between the cost-reflective and authorized rate) in the form of tariff shortfall funds, according to NERC, which stated that the government intervention was taken owing to the “absence of cost-reflective tariffs.”

The NBET invoices that are due from DisCos are covered by this funding.