The Federal Government spent ₦418.79 billion on electricity subsidies in the fourth quarter of 2025, according to data released by the Nigerian Electricity Regulatory Commission (NERC).
The subsidy covered the gap between the actual cost of electricity generation and the tariffs paid by consumers, with the government absorbing over 52 per cent of total generation costs during the period.
Despite the high expenditure, the figure represents a decline from ₦458.75 billion recorded in Q3 2025, indicating a slight reduction in subsidy burden.
The report also highlighted persistent inefficiencies in the power sector, with losses exceeding ₦300 billion due to billing gaps, technical issues, and collection inefficiencies across distribution companies.
Analysts say the continued subsidy payments reflect the absence of cost-reflective tariffs, as many consumers still pay below the actual cost of electricity, forcing the government to bridge the difference.
The development underscores ongoing challenges in Nigeria’s electricity sector, where efforts to balance affordability, efficiency, and sustainability continue to strain public finances.
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