The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the Federal Government's electricity subsidy bill rose to ₦1.92 trillion in 2025.
The figure highlights the significant financial burden of maintaining electricity subsidies amid persistent challenges in Nigeria's power sector.
Electricity subsidies are used to cover the gap between the cost of supplying electricity and the amount consumers pay through regulated tariffs.
The disclosure comes amid ongoing efforts to reform the electricity market, improve cost recovery and attract investment across the power sector.
NERC has continued to emphasise the need for measures that will improve the financial sustainability of electricity distribution and ensure that operators have sufficient resources to maintain and expand infrastructure.
The ₦1.92 trillion expenditure also underscores the scale of government intervention in the electricity market and the financial pressures associated with keeping electricity tariffs below the full cost of supply for eligible consumers.
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