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FG has announced plans to introduce an annual electricity subsidy of $600m for all customers from 2025 to 2027.
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The subsidy aims to bridge the gap between cost-reflective tariffs and regulated electricity rates.
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The government plans to introduce a social tariff to protect low-income and vulnerable customers.
The Federal Government has announced plans to introduce an annual electricity subsidy of $600m for all customers from 2025 to 2027, as part of efforts to reform the power sector.
According to Nigeria’s Energy Compact document, the initiative is part of the National Energy Compact and aligns with Nigeria’s broader electrification and clean energy transition plans.
The subsidy aims to bridge the gap between cost-reflective tariffs and regulated electricity rates.
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The document noted that the subsidy might take different forms, including a flat monthly subsidy per electricity consumer or a subsidy on the first 50 kilowatt-hours consumed each month.
By 2027, the government plans to introduce a social tariff to protect low-income and vulnerable customers once the broader cost-reflective framework is fully implemented.
The document stated, “In order to decrease the regressivity of electricity subsidies, move towards a full cost reflective tariff system which includes a limited and uniform subsidy for all customers in 2025 while the metering gap is being closed.”
Reps Launch Probe into NPA’s Assets, Illegal Occupation of FG Houses in Abuja
The House of Representatives Subcommittees of Public Assets has commenced an investigation into the Nigerian Ports Authority’s (NPA) assets and illegal occupation of Federal Government houses in Abuja.
This development follows the inaugural meeting of the subcommittees, where they announced their readiness to begin the probe.
