The Nigerian Electricity Regulatory Commission (NERC) says the electricity subsidy bill rose to N180.8 billion in September.

NERC announced the electricity subsidy bill in its monthly supplementary order released on September 12.

On April 3, NERC approved an increase in electricity tariff for customers under the Band A classification to reduce the amount the federal government spends on subsidising electricity.

The commission said customers under the classification, who receive 20 hours of electricity supply daily, will pay N225 per kilowatt (kW), starting from April 3 — up from N66.

With the approved tariff, the electricity regulator had said subsidy payment for the 2024 fiscal year will reduce by about N1.14 trillion.

A month later, distribution companies (DisCos) announced a reduction on the tariff of customers under the Band A classification to N206.80 per kilowatt-hour (kwh).

However, by July, four DisCos increased the tariff to N209.5 kwh.

According to the supplementary order for September, the electricity subsidy increased to N180.8 billion, from N173.7 billion in August.

In July, the electricity subsidy was N158.47 billion.

BREAKDOWN OF ELECTRICITY SUBSIDY FOR SEPTEMBER

According to the NERC report, the federal government will pay N19.92 billion to Eko Distribution Company (EKEDC); N14.87 billion to Benin Distribution Company (BEDC); N14.61 billion) to Enugu Distribution Company (EEDC); and N22.21 billion to Ibadan Distribution Company (IBEDC).

According to the order, Ikeja Distribution Company (IKEDC) will receive N23.76 billion, Jos Distribution Company (JEDC) N11.68 billion, and Kaduna Distribution Company (KAEDCO) N13.14 billion.

Also, Kano Distribution Company (KEDCO) will receive N12.96 billion, Port Harcourt Electricity Distribution (PHED) N13.45 billion, Yola Distribution Company (YEDC) N8.06 billion, and Abuja Electricity Distribution Company N26.14 billion.

Prior to the increase in Band A tariff, Adebayo Adelabu, minister of power, said it was difficult for the federal government to continue to subsidise electricity, saying Nigeria’s debt to generation and gas companies was N3 trillion.

So far, as of August 20, Adelabu said N205 billion had been paid out of N1.3 billion debt owed to generation companies (GenCos).