The federal government spent about N418.79bn on electricity subsidies in the last quarter of 2025, according to new figures released by the Nigerian Electricity Regulatory Commission (NERC).
In its fourth-quarter report, the regulator stated that this
amount is lower than what the government spent in the previous quarter.
The subsidy fell by N39.96bn compared to N458.75bn recorded
in Q3 2025.
The report also showed that government subsidies accounted
for 52.30 per cent of the total amount billed by power generation companies
(GenCos), a decrease from 58.63 per cent recorded in the previous quarter.
NERC said the reduction in subsidy was mainly due to an
increase in electricity supply to Band A customers.
The share of energy allocated to these customers rose from
40 per cent to 45 per cent, as part of government efforts to improve power
supply quality.
The report explained how the system works, noting that, “In
the absence of cost-reflective tariffs, the Government undertakes to cover the
resultant gap in the form of tariff subsidies.”
It added that, “For ease of administration, the subsidy is
only applied to the generation cost payable by DisCos to NBET in the form of a
DisCo’s Remittance Obligation (DRO).”
During the period, the total invoice issued by the Nigerian
Bulk Electricity Trading (NBET) to distribution companies (DisCos), after
adjustments, was N386.13bn. Out of this, DisCos paid N359.27bn, representing a
remittance rate of 93.04 per cent.
This performance is slightly lower than in Q3 2025, when
DisCos paid 95.23 per cent of their total invoice.
Looking at individual companies, most DisCos met their full
payment obligations.
However, a few recorded lower performance levels. Yola,
Benin, Ibadan, Kano, Jos, and Kaduna DisCos all paid below 100 per cent, with
Kaduna and Jos recording some of the weakest remittance rates.
The report also showed mixed performance trends. While Benin
and Kaduna DisCos improved compared to the previous quarter, others, such as
Kano, Jos, Ibadan, and Yola, recorded declines in their payment performance.
Meanwhile, Abuja, Eko, Enugu, Ikeja, and Port Harcourt
DisCos maintained a consistent 100 per cent remittance across both quarters.
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