The Federal Government incurred a subsidy of ₦418.79 billion on electricity in the fourth quarter of 2025, according to the Nigerian Electricity Regulatory Commission.
In its latest quarterly report, the regulator said the figure represents an 8.71 per cent decrease from the ₦458.75 billion recorded in the third quarter. Subsidy payments accounted for 52.30 per cent of the total invoices issued by generation companies during the period.
The Commission said the reduction was partly due to an increase in energy supplied to Band A customers from 40 to 45 per cent, in line with efforts to improve electricity supply quality. It added that the Nigerian Bulk Electricity Trading company issued invoices of ₦386.13 billion to distribution companies, with ₦359.27 billion remitted, representing a 93.04 per cent performance rate.
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The report noted that in the absence of cost-reflective tariffs, the government continues to bridge the gap between actual costs and approved tariffs through subsidies applied at the generation level. It also showed that while several distribution companies achieved full remittance, others, including Kaduna and Jos, recorded significantly lower performance levels.
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