Federal Government don spend ₦1.98 trillion for electricity subsidy within 12 months, from October 2024 reach September 2025, even as e still dey struggle to pay over ₦4 trillion debt wey e owe power generation companies.
This one come from quarterly reports wey Nigerian Electricity Regulatory Commission (NERC) release.
According to di report, government spend ₦471.69 billion for electricity subsidy between October and December 2024. For first quarter of 2025, subsidy rise to ₦536.4 billion, while second quarter record ₦514.35 billion.
Latest NERC report wey dem release on Tuesday show say for third quarter of 2025, government still pay ₦458.75 billion subsidy, as electricity tariff still dey below di real cost of production. Altogether, subsidy reach ₦1.98 trillion within one year.
NERC explain say because electricity tariff never reach cost-reflective level, government dey cover di difference between real cost and approved tariff through subsidy.
Despite di Band A tariff increase wey start April 2024, subsidy burden still high. Minister of Power, Adebayo Adelabu, don talk several times say electricity subsidy no dey sustainable again, and say subsidy suppose focus only on poor Nigerians.
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NERC explain say subsidy dey applied directly through DisCos’ payment to Nigerian Bulk Electricity Trading Plc (NBET). Under di system, government dey pay part of di generation cost on behalf of DisCos through wetin dem call DisCo Remittance Obligation (DRO).
According to NERC, DRO na di part of power bill wey DisCos fit pay based on di tariff dem collect from customers, while government dey settle di balance as subsidy.
For third quarter of 2025, DisCos record 95.23% remittance performance to NBET. Some DisCos like Abuja, Eko, Ikeja, Enugu, Ibadan, Port Harcourt and Yola pay 100%, but Jos and Kaduna DisCos still fall hand well-well.
NERC also reveal say electricity companies dey lose plenty money due to energy theft, poor metering and weak billing system. Between second and third quarter of 2025, DisCos lose over ₦315 billion.
Experts for power sector don repeatedly call on Federal Government to remove electricity subsidy, say e dey choke di entire sector and cause liquidity problems.
Consumers too dey complain say despite paying high bills, light supply still dey poor, as many Nigerians dey pay for darkness instead of steady electricity.