The Federal Government has incurred a total of N1.98tn in electricity subsidy obligations in 12 months, from October 2024 to September 2025.
‎This comes amid its struggles to pay the over N4tn debt owed to power generation companies,
‎The Nigerian Electricity Regulatory Commission revealed this on Tuesday in it’s latest report
‎The Federal Government incurred a power subsidy burden of N458.75bn in the third quarter of 2025 as electricity tariffs remained below cost-reflective levels, making a total of N1.98tn in the 12-month period, from October 2024 to September 2025.
‎NERC stated in its reports that in the absence of cost-reflective tariffs, the government undertook to cover the resultant gap between the cost-reflective and allowed tariff in the form of tariff subsidies
‎The commission added that the subsidy was applied at source through the DisCos’ payment obligations to the Nigerian Bulk Electricity Trading Plc (NBET).
‎Operators in the power sector have repeatedly called on the Federal Government to remove the subsidies on electricity so as to end the challenges of liquidity.
Edited by Favour Owonibi.