Recent Report from the Nigerian Electricity Regulatory Commission (NERC) say in the first half of 2025, federal government owed electricity generation companies over N1.05 trillion in power subsidy payments for both Q1 and Q2.
The subsidy obligations increased due to the absence of cost-reflective tariffs, requiring the government to cover the gap between actual generation costs and consumer charges. In Q2, the government’s subsidy obligation was N514.35 billion, a slight decrease from N536.40 billion in Q1, driven by reduced energy off-take by distribution companies (DisCos).
The total invoiced energy for the quarter was N863.02 billion, with DisCos remitting N333.90 billion, representing a 95.77% repayment rate. So far, All DisCos met the remittance target except Jos and Kaduna. Additionally, the government has approved a N4 trillion bond to settle legacy debts owed to power generators, but details on its allocation remain unclear.
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