Nigeria's Q4 2025 Electricity Subsidy Hits ₦418.79 Billion

The Nigerian Electricity Regulatory Commission (NERC) reported that the federal government incurred ₦418.79 billion in electricity subsidies during the fourth quarter of 2025. This figure highlights the ongoing financial burden on the government to sustain Nigeria's electricity market amidst tariffs that do not reflect actual costs.

The subsidy amount decreased by ₦39.96 billion, or 8.71%, compared to the ₦458.75 billion recorded in the third quarter of 2025. The report indicates that government subsidies accounted for 52.30% of total invoices from power generation companies in Q4, down from 58.63% in Q3.

The decline is attributed to an increase in energy allocation and a rise in supply band custom from 40% to 45%, which significantly reduced the subsidy burden. The report also noted that the remittance performance of electricity distribution companies (DISCOs) stood at ₦359.27 billion, translating to a 93.04% performance rate, slightly lower than the 95.23% achieved in the previous quarter.