The Federal Government, through the Nigerian Electricity Regulatory Commission, NERC, has approved a new cost-reflective tariff increase for the electricity distribution companies in Nigeria.
NERC disclosed this in a Multi-Year Tariff Order for DisCos uploaded on its official website on Wednesday, stating that the electricity subsidy will gulp one point six trillion naira in 2024.
The commission said the new MYTO for DisCos takes effect from January 1 2024.
Meanwhile, the Chairman of NERC, Sanusi Garba, who explained the development to newsmen in Abuja, said the Federal Government would spend 30 billion naira monthly, amounting to one point six trillion naira, on electricity subsidies in 2024.
Garba noted that the implication is that for any one hundred and fifty naira electricity bill, the Federal Government will pay ninety naira while consumers will bear the remaining fraction, adding that electricity tariff adjustments would be made monthly to avoid rate hike shock.
“If we have determined that you should be paying N150 and the Federal Government says you should pay N60, it will pay the difference. Then that is what it is, and the government would now provide the money.
“One of the new things in tariff order is, to avoid rate shock, we will now be doing the minor tariff review very frequently, like every month,’’ he said.