August 31, 2026
By Obas Esiedesa, Abuja
The Federal Government’s electricity tariff subsidy obligation rose to N1.928 trillion in 2025 as it continued to absorb the gap between cost-reflective tariffs and the rates paid by electricity consumers, according to the Nigerian Electricity Regulatory Commission (NERC).
NERC, in its 2025 industry report, said the subsidy represented 57.44 per cent of the total Nigerian Bulk Electricity Trading (NBET) invoice, translating to an average obligation of N160.69 billion monthly.
The subsidy obligation stood at N536.40 billion in the first quarter, N514.36 billion in the second quarter, N458.76 billion in the third quarter and N418.79 billion in the fourth quarter.
