The Nigerian Electricity Regulatory Commission (NERC) says the Federal Government spent N418.79bn on electricity subsidy in Q4 2025, while inefficiencies led to losses exceeding N300bn.
According to NERC’s report, power generation invoices hit N804.93bn, with the government covering over 52% due to non-cost-reflective tariffs.
Despite this, distribution companies recorded major losses. Of N969.19bn worth of electricity supplied, only N795.06bn was billed, resulting in N174.12bn in billing losses.
Additional losses of N139.19bn were recorded due to technical and collection inefficiencies, pushing total losses above N300bn.
Remittances also dropped, with DisCos paying N437.27bn out of N471.66bn owed, while grid instability and a slight dip in generation capacity persisted.
NERC warned that the current subsidy system remains unsustainable and exposes government finances to uncertainty.
