Nigeria's Electricity Subsidy Hits N1.928 Trillion Amid Tariff Freeze
The Nigerian Electricity Regulatory Commission (NERC) reported that Nigeria's electricity subsidy liability has climbed to N1.928 trillion, as regulated tariffs continue to be below the actual cost of supplying power to consumers. This figure reflects a significant increase from approximately N650 billion in 2023 to N1.94 trillion in 2024, before stabilizing at around N1.92 trillion in 2025.
The quarterly subsidy obligations in 2025 were recorded as N536.4 billion in Q1, N514.35 billion in Q2, N458.75 billion in Q3, and N418.79 billion in Q4. NERC attributed the widening subsidy gap to rising costs in the power value chain, including naira depreciation and increased gas prices.
Under the band-based tariff system introduced in 2024, customers are categorized based on expected electricity supply hours. NERC has also updated tariff orders for several distribution companies.
Despite a national electricity metering rate of 61.51%, distribution companies faced average losses of 37.03%.
Plus234Feed summary based on reporting from Leadership Newspaper. Read the original report below.
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