The Federal Government of Nigeria incurred a power subsidy of N418.79 billion in the fourth quarter of 2025, according to data from the Nigerian Electricity Regulatory Commission.
In its Q4 2025 report, NERC stated that the subsidy reflected the gap between cost-reflective tariffs and the regulated rates paid by consumers. The figure represents a decrease from the N458.75 billion recorded in Q3 2025, indicating a reduction of N39.96 billion.
The report showed that government subsidy accounted for 52.30 per cent of the total invoice from generation companies, down from 58.63 per cent in the previous quarter. This decline was partly attributed to increased energy allocation to Band A customers, rising from 40 per cent to 45 per cent, as part of efforts to improve electricity supply quality.
The Nigerian Bulk Electricity Trading Plc issued a total invoice of N386.13 billion to distribution companies (DisCos) in Q4 2025, with total remittances amounting to N359.27 billion, representing a 93.04 per cent performance rate. This compares to a 95.23 per cent remittance rate recorded in Q3.
NERC noted that in the absence of fully cost-reflective tariffs, the government continues to shoulder the financial shortfall through subsidies to sustain the power sector.
A breakdown of remittance performance showed that while several DisCos achieved full compliance, others—including those in Yola, Benin, Ibadan, Kano, Jos, and Kaduna—recorded varying levels of underperformance.
