Nigeria's Electricity Subsidy Drops to ₦358.32 Billion in Q1

In the first quarter of 2026, the Nigerian government incurred a subsidy payment of ₦358.32 billion, which represents a ₦60.46 billion or 14.44% reduction compared to the ₦418.79 billion subsidy payment in Q4 2025. The Nigerian Electricity Regulatory Commission (NERC) reported that the government paid ₦126.48 billion in January, ₦116.34 billion in February, and ₦115.50 billion in March.

The report indicates that the electricity supply was severely impacted by a reduction in gas supply, particularly during the peak sunny months of February and March, leading to load shedding across the country. The Nigerian Independent System Operator (NISO) noted that the national grid received insufficient gas supply, which directly affected the overall electricity generation capacity.

In February 2026, the actual gas supply was approximately 692.00 million standard cubic feet per day, significantly short of the required 1,629.75 million standard cubic feet per day for optimal operation.