FG Subsidizes Electricity Tariffs with ₦358.3bn in Q1 2026

The Nigerian Electricity Regulatory Commission (NERC) disclosed that the Federal Government paid ₦358.3 billion in subsidies to cushion electricity tariffs in the first quarter of 2026, covering the period from January to March. This payment was made to offset the gap between the actual cost of electricity generation and the tariffs paid by consumers.

The subsidy burden decreased from ₦418.79 billion in the final quarter of 2025, marking a 14.44% reduction. The report indicated that the reduction was not due to improvements in electricity pricing or cost recovery but rather a decrease in the volume of electricity purchased by distribution companies (DISCOs).

The government continues to absorb the shortfall to prevent consumers from bearing the full cost of power generation. During this quarter, the total electricity supply billed to the country’s 11 distribution companies amounted to ₦689.72 billion, with ₦331.40 billion invoiced transferred to DISCOs under an approved remittance framework.

The report also noted that the government’s support accounted for 51.95% of the total invoiced issued to electricity generation companies.