Nigeria’s annual electricity subsidy has soared by 269% to ₦2.4 trillion in 2024, up from ₦650 billion in 2023, despite efforts to reduce it through tariff adjustments.
This was revealed by Dr. Yusuf Ali, Commissioner for Planning, Research, and Strategy at NERC, during PwC’s Power and Utilities Roundtable in Lagos.
Dr. Ali attributed the surge to foreign exchange instability, which increased tariffs by 118%. He noted that subsidies could have risen even higher amid economic shocks without previous tariff reforms.
Minister of Power, Chief Adebayo Adelabu, represented by Adedayo Olowoniyi, highlighted ongoing measures to stabilize the energy sector. These include grid maintenance, replacing outdated equipment, and a proposed super grid project for long-term resilience.
The government reaffirmed its commitment to delivering reliable and sustainable power to Nigerians under the Electricity Act 2023.
