Electricity subsidy falls to N358bn as DisCos take less power
The Federal Government spent N358.32 billion on electricity tariff subsidies in the first quarter of 2026 to keep consumer tariffs below the actual cost of supplying power, the Nigerian Electricity Regulatory Commission (NERC) has disclosed.
The figure, contained in the Commission’s First Quarter 2026 report released on Monday, represents a decline of N60.46 billion, or 14.44 per cent, from the N418.79 billion recorded in the final quarter of 2025.
Related News
NERC attributed the reduction largely to lower electricity offtake by electricity distribution companies (DisCos), rather than any significant improvement in the recovery of electricity tariffs.
The Commission explained that because electricity tariffs remain below cost-reflective levels, the Federal Government continues to absorb the shortfall between the actual cost of generating electricity and the tariffs approved for consumers.
It noted that under the Distribution Companies’ Remittance Obligation (DRO) framework, DisCos are
This post was originally published on this site.
