FG spends N418.79bn on electricity subsidy in Q4 2025

The national authorities spent astir N418.79bn connected energy subsidies successful the past 4th of 2025, according to caller figures released by the Nigerian Electricity Regulatory Commission (NERC).

In its fourth-quarter report, the regulator stated that this magnitude is little than what the authorities spent successful the erstwhile quarter.

The subsidy fell by N39.96bn compared to N458.75bn recorded successful Q3 2025.

The study besides showed that authorities subsidies accounted for 52.30 per cent of the full magnitude billed by powerfulness procreation companies (GenCos), a alteration from 58.63 per cent recorded successful the erstwhile quarter.

NERC said the simplification successful subsidy was chiefly owed to an summation successful energy proviso to Band A customers.

The stock of vigor allocated to these customers roseate from 40 per cent to 45 per cent, arsenic portion of authorities efforts to amended powerfulness proviso quality.

The study explained however the strategy works, noting that, “In the lack of cost-reflective tariffs, the Government undertakes to screen the resultant spread successful the signifier of tariff subsidies.”

It added that, “For easiness of administration, the subsidy is lone applied to the procreation cost...