FG Slashes Electricity Subsidy, Saves Billions

Following the government’s decision to revise electricity tariffs, there has been a substantial 52% reduction in monthly subsidy expenses. This significant cut translates to a decrease from the previous N261.2 billion to approximately N125.94 billion monthly, resulting in a notable N135.26 billion in fiscal savings.

The adjustment primarily impacts premium electricity consumers categorized under Band A. The revised tariff structure redistributes the burden of costs, with consumers bearing a higher proportion of expenses previously covered by subsidies.

Here’s a breakdown of the impact of the new tariff hike on subsidy costs for each Power Distribution Company (DisCo) as presented by the Nigerian Electricity Regulatory Commission (NERC):

1. Abuja (AEDC):
   • Number of Band A Feeders: 107
   • New tariff range: N33.95 to N225.00
   • Monthly subsidy cost: Reduced to N18.95 billion from N38.01 billion
2. Kaduna (KAEDC):
   • Number of Band A Feeders: 25
   • New tariff range: N35.41 to N225.00
   • Monthly subsidy cost: Decreased to N9.76 billion from N18.24 billion
3. Benin (BEDC):
   • Number of Band A Feeders: 44
   • New tariff range: N41.20 to N225.00
   • Monthly subsidy cost: Lowered to N11.01 billion from N21.69 billion
4. Eko (EKEDC):
   • Number of Band A Feeders: 21
   • New tariff range: N32.44 to N225.00
   • Monthly subsidy cost: Reduced to N13.74 billion from N32.28 billion
5. Enugu (EEDC):
   • Number of Band A Feeders: 44
   • New tariff range: N36.20 to N225.00
   • Monthly subsidy cost: Decreased to N10.31 billion from N19.59 billion
6. Ibadan (IBEDC):
   • Number of Band A Feeders: 30
   • New tariff range: N36.26 to N225.00
   • Monthly subsidy cost: Decreased to N11.16 billion from N31.31 billion
7. Ikeja (IEDC):
   • Number of Band A Feeders: 45
   • New tariff range: N31.24 to N225.00
   • Monthly subsidy cost: Reduced to N17.03 billion from N38.37 billion
8. Jos (JEDC):
   • Number of Band A Feeders: 48
   • New tariff range: N39.90 to N225.00
   • Monthly subsidy cost: Lowered to N9.19 billion from N15.51 billion
9. Kano (KEDC):
   • Number of Band A Feeders: 43
   • New tariff range: N31.88 to N225.00
   • Monthly subsidy cost: Decreased to N7.79 billion from N18.48 billion
10. Port Harcourt (PHEDC):
    • Number of Band A Feeders: 43
    • New tariff range: N39.44 to N225.00
    • Monthly subsidy cost: Reduced to N10.13 billion from N18.89 billion
11. Yola (YEDC):
    • Number of Band A Feeders: 15
    • New tariff range: N30.01 to N225.00
    • Monthly subsidy cost: Decreased to N6.87 billion from N8.83 billion