Nigeria TV Info reports: The Federal Government's electricity tariff subsidy surged dramatically from ₦610 billion in 2023 to ₦1.94 trillion in 2024, marking a staggering 219.67% increase in subsidy expenditure within just one year. This rise occurred even after the Band A tariff hike introduced in April 2024.

According to the Nigerian Electricity Regulatory Commission (NERC) and industry analysts, this spike is largely due to economic shifts following President Bola Tinubu’s floating of the naira in June 2024, as well as the complete removal of fuel subsidies—two policy changes that contributed to rising inflation and increased energy costs.

NERC’s 2024 report revealed that the ₦1.94 trillion subsidy was meant to offset the gap between the actual cost of electricity and the regulated tariffs paid by customers. However, the Federal Government was only able to settle ₦371.34 million, a mere 0.019% of its total subsidy obligation.

The report further explained that because of the government's decision to freeze electricity tariffs across all Distribution Companies (DisCos), it incurred an average monthly subsidy obligation of ₦161.85 billion—amounting to 62.59% of the total NBET invoice for 2024. This reflects the administration’s policy of shielding consumers from full cost-reflective tariffs despite soaring generation and distribution costs.