Nigeria’s Electricity Regulatory Commission (NERC) has reported a substantial increase in the cashflow within the country’s power sector. According to NERC Chairman Engr Sanusi Garba, the liquidity in Nigeria’s power sector has escalated from N282 billion in 2015 to an impressive N900 billion.
This announcement was made during the three-day ministerial retreat focusing on the Integrated National Electricity Policy and Strategic Implementation Policy. Garba highlighted that the N373 billion surge has significantly alleviated the financial strain on the industry and the Federal Government.
During his presentation at the ministerial retreat, Garba emphasized the positive shift, stating, “Liquidity in the market has moved from N282 billion in 2015 to N900 billion now. We have also created a mechanism for enforcing payment discipline in the industry. This has seen Disco revenue improve significantly.”
In addition to the notable increase in liquidity, Garba expressed that the fiscal burden on the government has been reduced from N528 billion to N155 billion in 2022 as a result of NERC’s strategic interventions. He emphasized the crucial role of these actions, underlining that “Without our actions, the subsidy would have been in the region of N665 billion.”
Furthermore, NERC’s quarterly report for Q2 2023 revealed that the commission disbursed a substantial N135.23 billion on electricity during this period.
The surge in cashflow within Nigeria’s power sector and the subsequent reduction in the government’s financial burden underscore the positive strides being made to enhance the sustainability and efficiency of the country’s electricity market. This development augurs well for the economic landscape and underlines the impactful role of NERC in shaping Nigeria’s power sector for the better.
