Electricity subsidy falls 35% to N679bn in H1’26

The Federal Government's electricity subsidy bill fell by 35.27 percent to N679.58 billion in the first half of 2026, compared to N1.05 trillion in the same period of 2025. The Nigerian Electricity Regulatory Commission (NERC) reported that the subsidy obligation was N321.26 billion in Q2 2026, down from N358.32 billion in Q1. The decline was attributed to a 3.40 percent reduction in electricity off-take by distribution companies. NERC noted that the absence of cost-reflective tariffs led to the subsidy obligation.

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