By Obas Esiedesa, Abuja
ABUJA – The Federal Government incurred an electricity tariff subsidy of N358.32 billion in the first quarter of 2026 as it continued to bridge the gap between cost-reflective electricity tariffs and the rates paid by consumers, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).
In its First Quarter 2026 report released on Monday, NERC said the subsidy represented a 14.44 per cent decline from the N418.79 billion recorded in the fourth quarter of 2025.
The Commission attributed the reduction mainly to lower electricity offtake by distribution companies (DisCos), rather than improvements in tariff recovery.
NERC explained that because electricity tariffs remain below cost-reflective levels, the Federal Government continues to subsidise the difference between the actual cost of power generation and the approved tariffs charged to consumers.
