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Nigeria’s electricity subsidy obligations have risen to N1.98 trillion over the 12 months from October 2024 to September 2025, according to the latest quarterly reports from the Nigerian Electricity Regulatory Commission (NERC).The country’s increasing electricity subsidy obligations have further heightened debate in support of a fresh tariff hike across the board for electricity users.The report released by NERC on Tuesday shows that the government spent N471.69 billion on electricity subsidies in the fourth quarter of 2024 (October–December), N536.4 billion in the first quarter of 2025, and N514.35 billion in the second quarter. The third quarter of 2025 recorded a subsidy burden of N458.75 billion, as electricity tariffs remained below cost-reflective levels.NERC noted that, aside from Band A consumers, who experienced a tariff hike in April 2024, electricity tariffs have not been cost-reflective, contributing to the rising subsidy burden.The surge in subsidies comes as the federal government continues to contend with N4 trillion in legacy debts owed to generation companies.Minister of Power, Adebayo Adelabu, repeatedly stated last year that the current electricity subsidy is unsustainable, advocating instead for a scheme targeting only the poor.
Nigeria’s electricity subsidy obligations have risen to N1.98 trillion over the 12 months from October 2024 to September 2025, according to the latest quarterly reports from the Nigerian Electricity Regulatory Commission (NERC).
The country’s increasing electricity subsidy obligations have further heightened debate in support of a fresh tariff hike across the board for electricity users.
The report released by NERC on Tuesday shows that the government spent N471.69 billion on electricity subsidies in the fourth quarter of 2024 (October–December), N536.4 billion in the first quarter of 2025, and N514.35 billion in the second quarter. The third quarter of 2025 recorded a subsidy burden of N458.75 billion, as electricity tariffs remained below cost-reflective levels.
NERC noted that, aside from Band A consumers, who experienced a tariff hike in April 2024, electricity tariffs have not been cost-reflective, contributing to the rising subsidy burden.
The surge in subsidies comes as the federal government continues to contend with N4 trillion in legacy debts owed to generation companies.
Minister of Power, Adebayo Adelabu, repeatedly stated last year that the current electricity subsidy is unsustainable, advocating instead for a scheme targeting only the poor.
Adebayo had advocated for another electricity tariff hike to phase out the burden of electricity subsidies.
To address the liquidity crisis in the Nigerian Electricity Supply Industry (NESI), the government launched a N4 trillion bond in December 2025 to begin repaying legacy debts.
