NERC: New Electricity Tariff Expected to Decrease 2024 Subsidies by NI.14 Trillion

“NERC Forecasts N1.14 Trillion Reduction in 2024 Subsidies with New Electricity Tariffs”The Nigerian Electricity Regulatory Commission (NERC) has projected a decrease of approximately N1.14 trillion in subsidies for 2024 due to the approval of new tariffs. This information was disclosed in a statement released by the Commission’s management on Wednesday, highlighting the tariff revision as part of the Federal government’s ongoing subsidy realignment efforts.In January 2024, the Commission initially estimated that the federal government would allocate N1.6 trillion towards electricity subsidies for the fiscal year. Musiliu Oseni, the vice chairman of NERC, previously announced the revised tariff structure during a press briefing. Under the new tariff, customers in Band A, receiving a minimum of 20 hours of electricity per day, are expected to pay N225 per kilowatt-hour (kWh).