The Federal Government recorded an electricity subsidy obligation of ₦418.79 billion in the fourth quarter of 2025, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).
In its 2025 Q4 report, NERC stated that the subsidy figure represents a ₦39.96 billion (8.71%) decline from the ₦458.75 billion recorded in Q3 2025. The regulator noted that subsidy payments accounted for 52.30% of total invoices from power generation companies (GenCos), down from 58.63% in the previous quarter.
The reduction was attributed to increased energy allocation to Band A customers, which rose from 40% to 45%, aligning with the government’s strategy to improve electricity supply quality and reduce subsidy pressure.
Data from the Nigerian Bulk Electricity Trading Plc (NBET) showed that DisCos were billed ₦386.13 billion in Q4, while total remittances stood at ₦359.27 billion, reflecting a 93.04% performance rate. This marks a slight drop from Q3, when remittance performance was 95.23%.
NERC explained that in the absence of cost-reflective tariffs, the government bridges the funding gap through subsidies applied to generation costs via the DisCo Remittance Obligation (DRO) framework.
A breakdown of DisCos’ remittance performance showed that most achieved 100% compliance, including Abuja, Eko, Enugu, Ikeja, and Port Harcourt DisCos. However, Yola (99.42%), Benin (98.30%), Ibadan (95.58%), Kano (75.14%), Jos (49.80%), and Kaduna (40.73%) recorded lower remittance levels.
Quarter-on-quarter analysis indicated improvements in Benin and Kaduna DisCos, while Kano, Jos, Ibadan, and Yola DisCos recorded declines in remittance performance.
