The Federal Government paid over ₦633.30 billion on electricity subsidy in the first quarter of 2024, findings have shown.

According to the Nigerian Electricity Regulatory Commission quarterly report, the sum represented a 150.5 per cent increase from ₦252.76 billion in the fourth quarter of 2023.

The sum paid in the first three months of the year is higher than ₦628.61billion paid from January to December 2023.

A breakdown of the ₦633.30 billion showed that subsidy gulped ₦36.02 billion in the first quarter, ₦135.23 billion in the second quarter, ₦204.6 billion in the third quarter and ₦252.76 billion in the fourth quarter of 2023.

The electricity market regulator blamed the increase on the government’s policy to harmonise exchange rates, as well as the absence of cost-reflective tariffs across all electricity distribution companies.

“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the Government incurred a subsidy obligation of ₦633.30 billion in 2024/first quarter, an average of ₦211.10 billion per month.”

On revenue collection, the report said the DisCos recorded a shortfall, as the total revenue in the period was ₦291.62 billion out of ₦368.65 billion billed to customers.

Also, the total energy received by all DisCos was 7,171.93GWh while the energy billed to end-use customers was 5,769.52GWh, translating into an overall billing efficiency of 80.45 per cent.

Ikeja DisCo collected the highest revenue (₦57.88 billion) in the period, followed by Eko DisCo at ₦48.74 billion. While Yola DisCo collected the least revenue at ₦5.4 6billion.

Also, of the total revenue collected in the period, Abuja DisCo collected ₦48.60 billion, Ibadan DisCo collected ₦30.35 billion, Benin DisCo collected ₦22.46 billion, Enugu DisCo collected ₦21.24 billion, Port Harcourt DisCo collected ₦20.39 billion.

Others include: Kano DisCo at ₦13.62 billion, Jos DisCo collected ₦13.29 billion, Kaduna DisCo collected ₦9.60 billion.

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