Nigeria: Electricity Subsidy Bill Hits N1.92trn in 2025 - NERC

What the report says

Nigeria’s federal electricity subsidy bill remained very large in 2025, with the Nigerian Electricity Regulatory Commission saying the government’s tariff support reached about N1.92 trillion. The figure, reported by Vanguard and distributed by AllAfrica, reflects the gap the state continues to cover between cost-reflective power prices and what many consumers pay.

According to NERC’s 2025 industry report, the gross subsidy obligation came to N1.928 trillion, equal to 57.44% of the Nigerian Bulk Electricity Trading company’s invoice for the year. The commission said this averaged roughly N160.69 billion a month. It also broke the total into quarterly amounts, with the first quarter highest at N536.40 billion and the fourth quarter lowest at N418.79 billion.

The report said the 2025 subsidy was slightly lower than the N1.949 trillion recorded in 2024. NERC linked the gradual decline to reduced electricity taken by distribution companies and a larger share of supply going to Band A customers. It also noted that the government’s decision to keep customer tariffs frozen at July 2024 levels contributed to the continued subsidy burden.

The development matters because it highlights the fiscal pressure created by Nigeria’s long-running electricity pricing gap. In general, such subsidies can help cushion consumers, but they also strain public finances and complicate power-sector reform efforts.