Nigeria Spends N358bn on Electricity Subsidies Amid Blackouts

In the first quarter of 2026, the Nigerian government allocated N358.32 billion for electricity subsidies, despite persistent blackouts affecting the power sector. The Nigerian Electricity Regulatory Commission (NERC) reported that the subsidy bill averaged N119 billion monthly, with a shortfall of N126.48 billion in January, N116.34 billion in February, and N115.50 billion in March.

This represents a 14.44% reduction from the N418.79 billion recorded in the fourth quarter of 2025. The government continues to freeze end-user tariffs until July 2024, which has led to a significant financial obligation for the government, covering approximately 52% of total generation costs.

The report indicated that electricity generation capacity fell by 17.45% during this period, with total generation declining by 9.64%. Additionally, the national grid experienced two disturbances, resulting in widespread blackouts.

The NERC warned that the current subsidy regime exposes the government to uncertain financial obligations due to fluctuations in generation costs.