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.

Eze Chidiebere Paul

Eze Chidiebere Paul

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