Nigerian government’s electricity tariff subsidy has increased from N610 billion in 2023 to N1.94 trillion in 2024—a 219.67% increase—despite a tariff hike in April 2024.
This rise is linked to the naira devaluation and removal of fuel subsidies, which caused high inflation. Recall In 2024, the government paid only a tiny fraction (about 0.019%) of its subsidy obligation, covering the shortfall created by frozen tariffs despite rising costs.
While the subsidy costs in 2024 exceeded those in 2023, this reflects ongoing policy issues with cost-reflective tariffs and subsidy payments.
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