According to the Nigerian Electricity Regulatory Commission (NERC), the newly approved electricity pricing is expected to result in a N1.14 trillion reduction in the fiscal year 2024 subsidy.
 In a statement released on Wednesday in Abuja, Mr. Musliu Oseni, the Vice Chairman of NERC, made this announcement.
To counteract the effects of macroeconomic shifts, Oseni claims, the Federal Government has indicated that it intends to switch to a tailored subsidy scheme.
“With the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion in furtherance of the Federal Government’s realignment of the subsidy regime.”
“While largely protecting vulnerable customers and fostering investments targeted at providing efficient service delivery in the Nigerian Electricity Supply Industry (NESI).”
“The overarching objective of the commission in the consideration of the tariff application is the creation of a financially sustainable electricity market providing adequate and reliable power supply to drive the Nigerian economy.”
“The commission has approved revised rates that affect only customers classified under Band Serv category, which is approximately 15% of the customer population, after giving the tariff applications due consideration,” he stated.
Additionally, Oseni clarified that in accordance with its established norms and business rules, the commission conducted a thorough evaluation of the rate proposals provided by the 11 Electricity Distribution Companies (DisCos).
He stated that the licensees’ performance improvement plans, which included a public hearing, were examined prior to the review procedure.
Stakeholders and intervenors carefully examined the rate submission that the public utilities submitted during this hearing.
Empirical service data, according to Oseni, has verified that this client class has indeed gotten the committed level of service.
In order to resolve service failures, he said, a system for enforcement and compensation has been put in place.
In order to realize the benefits of the Electricity Act 2023, Oseni gave Nigerians assurance that the Commission, in cooperation with legislators, is still dedicated to guaranteeing sufficient and dependable electricity for all citizens.
This commitment will be demonstrated by mandatory investment targets, customer migration to Band, the establishment of a strong monitoring framework, and diligent work with state governments.
