NEWS
Nigeria’s Electricity Subsidy Falls by 40% in Q2 2024 Amid Tariff Review
The Nigerian Electricity Regulatory Commission (NERC) has reported a significant reduction in the federal government’s electricity subsidy obligation, which amounted to ₦380 billion in the second quarter (Q2) of 2024.
This marks a 40 percent decline, or ₦253.24 billion, compared to the ₦633.3 billion subsidy recorded in the first quarter (Q1).
In its quarterly report released on Friday, NERC attributed the reduction to an upward adjustment of the electricity tariff for Band A customers, implemented in April.
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The commission explained that the electricity subsidy obligation had dropped from 90.57 percent of the total GenCo invoice in Q1 to 52.51 percent in Q2.
This translated to an average monthly subsidy of ₦126.69 billion for the second quarter.
“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of ₦380.06 billion (52.51% of total NBET invoice) in 2024/Q2,” NERC said in its report.
The report highlighted that the federal government has been covering the gap between the cost-reflective and approved tariffs, providing subsidies as a result.
The subsidies are applied specifically to the generation cost payable by electricity distribution companies (DisCos) to the Nigerian Bulk Electricity Trading Plc (NBET) through a DisCo’s Remittance Obligation (DRO).
In an effort to reduce the fiscal burden, NERC approved a tariff increase on April 3 for Band A customers, who receive 20 hours of daily power supply.
The new tariff rate of ₦225 per kilowatt (kW), up from ₦66, is expected to significantly cut electricity subsidies by about ₦1.14 trillion for the 2024 fiscal year.
While the tariff increase for Band A customers has been implemented, the rates for customers in Bands B to E have remained unchanged since December 2022, as part of the government’s subsidy policy.
The reduction in the subsidy obligation represents a major shift towards more cost-reflective tariffs in Nigeria’s power sector, though significant subsidies still remain due to the tariff structure.
The Nigerian Content Development and Monitoring Board (NCDMB) has launched a 5-day Hands-on Oracle Primavera P6 Training in Rivers State, targeting 50 participants.
The training, being executed by Mathnebi Nig. Ltd, commenced today, March 16th and will run until Friday, March 20th.
The intensive hands-on program aims to equip participants with practical skills in project management using Oracle Primavera P6, enhancing their capabilities in the energy and construction sectors.
The NCDMB’s sponsorship of the training underscores its commitment to boosting local capacity and driving Nigeria’s economic growth through skills development.
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The training is expected to benefit participants and contribute to the development of Nigeria’s project management landscape.
President Bola Ahmed Tinubu has sworn in Mr. Taiwo Oyedele as Nigeria’s new Minister of State for Finance at the Aso Rock Presidential Villa.
The swearing-in ceremony took place shortly after the Senate confirmed Oyedele’s nomination last Wednesday.
Oyedele, 50, from Ikaram, Akoko in Ondo State, brings over two decades of experience in fiscal policy and tax administration.
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He previously chaired the Presidential Committee on Fiscal Policy and Tax Reforms, which overhauled Nigeria’s tax system, introducing zero income tax for Nigerians earning N800,000 or less and exemptions for small businesses with turnovers below N50 million.
During his Senate screening, Oyedele described his appointment as “a call to serve at a critical time when Nigeria faces significant fiscal challenges and remarkable opportunities.”
He replaces Dr. Doris Uzoka-Anite, who has been redeployed to the Ministry of Budget and National Planning.
Oyedele also spent 22 years at PricewaterhouseCoopers, held executive programs at top global institutions including the London School of Economics and Harvard Kennedy School, and currently serves as a professor at Babcock University.
The minister’s appointment signals a continued focus on implementing the Tax Reform Acts, which took effect on January 1, 2026, and aim to simplify Nigeria’s tax system while boosting economic growth.
Passengers were thrown into panic on Monday after a train operating along the Abuja–Kaduna rail corridor derailed, leaving several passengers injured and disrupting services on the busy route.
The train, which was travelling from Kaduna to Abuja, reportedly failed to reach its destination as scheduled after the incident occurred along the rail line linking both cities.
According to passengers on board, the incident happened suddenly, sending shock through the coaches as the train came to an abrupt halt.
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Some passengers said they heard a loud bang before the train jolted violently, throwing several occupants off their seats.
Eyewitnesses said the sudden impact caused confusion inside the train compartments, with some passengers sustaining cuts and bruises after hitting seats and metal fittings.
Initial reports suggested that the Abuja-bound train might have collided with another train along the corridor, forcing rail operations to pause temporarily while authorities assessed the situation.
A source within the Nigerian Railway Corporation confirmed the incident but declined to give full details, noting that he was not authorised to speak publicly on the matter.
One of the passengers, Sada Malumfashi, shared his experience on social media shortly after leaving the train.
He described the moment as frightening, stating that the loud sound and sudden stop caused many passengers to be flung from their seats.
He said the train remained stationary for about 30 minutes before the journey resumed slowly toward Kubwa, located on the outskirts of Abuja.
When contacted, the spokesperson for the Nigerian Railway Corporation, Callistus Unyimadu, confirmed the development and said an official statement would be issued.
Authorities are yet to disclose the exact cause of the derailment or the full extent of injuries as investigations continue.
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