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How FG Incurs ₦1,949bn Gross Tariff Subsidy Shortfall In 2024: Power

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Electricity Meters

How FG Incurs ₦1,949bn Gross Tariff Subsidy Shortfall In 2024: Power

How FG incurs ₦1,949bn gross tariff subsidy shortfall in 2024: Power. The total gross electricity subsidy tariff shortfall incurred by the Federal Government to the power sector in 2024 amounted to ₦1,949 billion.

According to data sourced from the Nigerian Electricity Regulatory Commission’s newly released 2024 Annual Report, the debt was incurred as a result of a lower-than-cost-reflective tariff as computed for the year under review.

As a result, NERC said the government undertook to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding, which amounted to a total of ₦1,949.17 billion in 2024. The report, however, did not state whether or not the subsidy had to be paid by the Federal Government.

Further analysis of the report showed that in the first quarter of last year, the gross tariff subsidy incurred by FG was ₦633 billion, in Q2 2024, the tariff shortfall dropped to about ₦380 billion, in Q3 same year, the shortfall climbed to ₦464 billion, and by Q4, the tariff shortfall had climbed further to ₦471 billion.

This is as the Distribution Companies (Discos) again posted a sharp 40 per cent year-on-year revenue increase in April 2025, amid a total billing of ₦257.57 billion for the month.

The NERC indicated that for the month under consideration, the electricity utility companies raked in ₦199.85 billion, a record in recent times.

According to NERC, despite the record sum collected, it translated to a collection efficiency of 77.6 per cent, an improvement on March’s 71.1 per cent collection rate, still falling short of the funding needed to ensure full liquidity and sustainability in the Nigerian Electricity Supply Industry (NESI).

The impressive rise in billing occurred despite the total energy received by the Discos dropping to 2,622.46 gigawatt-hours (GWh), a 9.2 per cent decrease from the previous month.

Of this, the volume of electricity billed to customers stood at 2,184.61 GWh, a decline of 5.8 per cent, signalling that that the revenue jump was not driven by improved energy delivery, but largely by higher end-user tariffs, especially for Band ‘A’ customers, who are billed what has been described as cost-reflective rates of approximately ₦209 per kilowatt-hour, following the April 2024 adjustment from the previous ₦66/kWh.

Electricity Meters

Electricity Meters

The tariff reform, which more than tripled the cost of power for Band A customers, was intended to reflect the true cost of service and reduce the federal government’s subsidy burden. It also aimed to boost cash flows to Discos and Generation Companies (Gencos) while attracting investor confidence in the sector.

In the first quarter of 2025, total billing in the power sector hit ₦744.27 billion, with ₦553.63 billion collected, resulting in a quarterly collection efficiency of 74.4 per cent, down from 77.4 per cent recorded in Q4 2024.

Economy

Lagos Governor Sanwo-Olu Presents 100 Cars To Directors In Lagos Civil Service

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Sanwo-Olu

Lagos Governor Sanwo-Olu Presents 100 Cars To Directors In Lagos Civil Service

Lagos Governor Sanwo-Olu. Mr Sanwo-Olu described the gesture as part of ongoing efforts to strengthen institutional capacity and improve governance.

Mr Sanwo-Olu described the gesture as part of ongoing efforts to strengthen institutional capacity and improve governance.

He presented the cars at a brief ceremony at the Pavilion, Lagos House, Ikeja, where the beneficiaries, all directors on grade level 17, received the vehicles.

“This presentation of 100 brand new cars to our substantive directors is a deliberate investment in the machinery of governance.

“It is part of our ongoing efforts to strengthen institutional capacity, improve governance, and ensure that those saddled with critical responsibilities are well supported to deliver effectively,” Mr Sanwo-Olu said.

He congratulated the beneficiaries and urged them to see the gesture as a call to greater responsibility, accountability, and dedication to public service.

Mr Sanwo-Olu said the state government remained committed to the welfare of its workforce and would continue to create an enabling environment for officers to perform optimally.

The governor urged that the gesture should inspire other public servants to be diligent and loyal.

The state’s head of service, Olabode Agoro, commended the governor for the gesture, describing it as morale-boosting and a demonstration that hard work and excellence were appreciated in the Lagos State civil service.

Sanwo-Olu

Sanwo-Olu

Mr Agoro said the presentation would further inspire directors and other officers to remain steadfast in their duties.

Thanking the governor on behalf of the beneficiaries, one of the directors, Shakirat Adeosun, said the gesture would enhance their efficiency and enable them to discharge their duties with greater ease.

She promised that the directors would continue to support government policies and deliver quality service.

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Rising Oil Price Has Forced Some Countries To Ask Citizens To Work From Home: Dangote

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Aliko Dangote Hails World Bank

Rising Oil Price Has Forced Some Countries To Ask Citizens To Work From Home: Dangote

Rising oil price. Dangote spoke to journalists after a courtesy visit to President Bola Tinubu on Monday after the Eid al-Fitr celebrations.

The businessman said if the Middle East conflict does not ease, energy prices will continue to rise, adding that governments are currently unable to increase salaries.

“So people will really feel the heat. People like barbers, people who are making bread, people who have industries, who have to fire their own generators,” he said.

“I mean, you can see, in some countries today what they’ve done is ask everybody to work from home because they cannot…

“I think in Indonesia or so, they said only go to work four days a week and they will look at the situation, if it doesn’t improve, they will ask everybody not to go to work anymore. We did that in the time of COVID-19, where people worked from home.”

Speaking further on the impact of the conflict, Dangote said it carries significant implications for Nigeria.

He noted that although the country is not directly involved, the interconnected nature of the global economy means it will inevitably feel the effects.

“But we pray this situation will be sorted out, it’s not going to escalate. If it doesn’t de-escalate, we’ll end up paying big prices,” Dangote said.

Furthermore, he said Africa is already heavily burdened by debt, and adding the effects of the conflict would worsen the strain on governments and citizens alike, despite having no direct involvement in the crisis.

“If you look at it now, when you talk about energy, energy affects almost everything and it’s not only energy, some people will try and take a chance and say this an opportunity so let me make money,” Dangote said.

“So I pray, and we all need to pray that this thing de-escalates. If it doesn’t escalate, normally we in Africa, we don’t have any reserves in terms of savings or in terms of…

“People normally go out and look for money for the next day or even for the same day. If they don’t work that day, they won’t eat. So I think really, we just need all hands on deck to pray that this thing comes to an end.”

Aliko Dangote Hails World Bank

Dangote

On March 20, the International Energy Agency (IEA) said minimising road and air transport, working from home where possible, driving slower, and switching to electric cooking could significantly help cushion the shock of the Middle East conflict for consumers.

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Economy

FG Inaugurates PenCom Board, Tasks Members On Protection Of Pension Assets

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PenCom

FG Inaugurates PenCom Board, Tasks Members On Protection Of Pension Assets

The Federal Government has inaugurated the Board of the National Pension Commission, reinforcing its commitment to transparency, accountability, and the protection of over ₦28 trillion in pension assets.

Speaking at the ceremony, the SGF, Senator (Dr.) George Akume, charged members to uphold strong corporate governance while maintaining a clear boundary between oversight and management.

PenCom

PenCom

The Board, led by Chairman Agbaje Opeyemi Olukayode, pledged to safeguard contributors’ funds and support national development, while the Director-General Omolola Oloworaran reaffirmed commitment to collaboration in delivering secure and timely retirement benefits for Nigerians.

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