Nigeria government reports N3.14 trillion electricity subsidy spend

The Nigerian government reported spending N3.14 trillion on electricity subsidies between June 2023 and December 2025. According to the Ministry of Finance, these interventions were intended to protect consumers from tariff increases during power sector reforms. This expenditure was part of N30.64 trillion in additional spending pressures, which also included N9.39 trillion for wage adjustments and N9.37 trillion due to exchange-rate impacts on external debt servicing.

To finance these costs, the government mobilized N20.4 trillion through subsidy savings, additional revenues, and incremental borrowing, leaving a funding shortfall of N10.24 trillion. The administration has indicated plans to gradually withdraw electricity subsidies starting in 2027.

In response to these fiscal disclosures, former Vice President Atiku Abubakar criticized President Bola Tinubu’s economic management. Atiku challenged the administration to provide transparent accounting for nearly N30 trillion in Federation Account revenues and defended his own proposal for a targeted petroleum production-support mechanism, contrasting it with the current administration's policies.