The Nigerian Electricity Regulatory Commission (NERC) generated approximately N938.5 million as fees collected from importers of generators and other internal revenue sources from June 2020 to June 2021, an analysis of the data for the four quarters provided by the industry regulator, has shown.
Platforms Africa gathered that NERC had in 2013 introduced a N25,000 charge per unit of 100KVA generator imported into the country in its guidelines for obtaining clearance certificate for the importation of generating sets and related matters.
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It also, according to a report by ThisDay, fixed a charge of N3,500 per unit of between 25kva and 100kva generators imported into the country, while generators between 5kva and 25kva attract a charge of N1,000 per unit.
Furthermore, it resolved to begin the collection of N250 per unit of between 2.5kva and 5kva, while between 0.45 Kva and 2.5 Kva generators attract a charge of N150 per unit.
The amount collected by NERC is exclusive of duties and other taxes paid by the importers in the country.
Nigeria still relies largely on generating sets to power its over $400 billion economy.
The Lagos State government had in October 2021 revealed that as a result of the country’s inefficient and over-centralised electricity supply system, residents of the state alone, generated over 4,500MW daily through the use of generators.
Details of the financial position of the NERC showed that in the second quarter (Q2) of 2021, the IGR from fees arising from the importation of generator sets , licence processing and licencing fee was N431 million.
A breakdown of the amount showed that N20.23 million was generated in April, N160.79 million in May and N250.25 million in June of that year.
Furthermore, in the first quarter of 2021, NERC raked in N126.53 million, broken down into N50.80 million, N28.13 million and N47.60 million in January, February and March, respectively.
An analysis of the last six months of 2020 showed that in the third quarter of 2020, covering July, August and September, the industry regulator made N276.31 million from the same sources, segmented into
N71.10 million, N111.11 million and N94.10 million, in the three months.
Similarly, in the last three months of 2020, NERC raked in N104.88 million from import fee imposed on the sale of generating sets, among others.
However, the total operating levy received from market charges were N4.868 billion for Q2,2021 and N5.061 billion for Q1,2021. Total revenue for the period was N5.299 billion and N5.18 billion respectively, with personnel cost gulping N1 billion and N1.88 billion respectively.
Before then, in the last six months of 2020, operating levy was N2.64 billion for Q3 and N2.19 billion for Q2, with personnel cost standing at N843 million and N1.17 billion for the two quarters.
