Electricity Subsidy May Cross N2trn as Tariff Freeze Persists

Leadership News | 24-09-2026 11:00am |

Nigeria's electricity subsidy liability has reached N1.928 trillion, according to the Nigerian Electricity Regulatory Commission (NERC). The subsidy represents the gap between the cost-reflective price of electricity and the tariffs paid by consumers, with the Federal Government covering the difference. NERC attributed the rise to inflation and foreign exchange movements, noting that the subsidy burden increased from about N650 billion in 2023 to N1.94 trillion in 2024, before settling at roughly N1.92 trillion in 2025. Quarterly obligations in 2025 ranged from N536.4 billion in the first quarter to N418.79 billion in the fourth quarter.

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