With the federal government taking steps to halt subsidy payments in the electricity sector, a report from the Nigerian Electricity Regulatory Commission (NERC) has revealed that consumers in Adamawa, Borno, and Yola States will face the highest tariffs.
The 2024 Annual report by NERC indicates that the states under the Yola Electricity Distribution Company (YEDC) have an average of N266.64 per kilowatt (kwh), which exceeds the N175.31kwh by N91.33kwh
The report indicated that the elevated costs were attributable to increased operational expenses and other unique factors (like vandalism and insecurity in certain areas of the franchise), which the Federal Government sanctioned as part of the 2021 reprivatisation initiative. It further noted that since the DisCo was permitted to charge its customers like other DisCos, it benefited from the highest subsidy cost per energy unit delivered (twice the average subsidy per kWh of other DisCos).
It noted, however, that the cost-reflective tariffs and subsidy allocations per energy unit delivered by Ikeja and Eko DisCos were comparatively lower. On a national scale, the average CRT was N175.31/kWh, with an average allowed tariff of N100.27/kWh, leading to an average subsidy of N75.04/kWh.
An examination of the average permitted end-use customer electricity tariff in Nigeria for 2024, compared with the charges in specific African nations (mostly from West Africa).
“In 2024, the average allowed customer tariff in Nigeria was US$0.07/kWh (around N100.27/kWh), making it the lowest among the selected countries and constituting only 35.71% of the average tariff in the other selected countries (US$0.19/kWh
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