Nigeria spends ₦358 bn on electricity subsidy as grid generation falls 9.6%

The Nigerian Electricity Regulatory Commission (NERC) reported that the federal government paid ₦358.32 billion in electricity subsidies in the first quarter of 2026, covering about 52 % of total generation costs after tariffs were kept at July 2024 levels. The subsidy was 14.44 % lower than the previous quarter, largely because distribution companies (DisCos) reduced electricity offtake by 8.56 %.

Generation output dropped 9.64 % to 8,883.47 GWh and average available capacity fell 17.45 % to 4,458 MW. Technical, commercial and collection (ATC&C) losses rose to 37.44 %, far above the 16.92 % target, resulting in an estimated revenue shortfall of about ₦140.6 billion for DisCos.

Cross‑border power customers in Benin, Togo and Niger paid only 27.57 % of their invoices for the same period, leaving Nigeria with an outstanding debt of ₦17.45 billion. Meanwhile, the Nigerian Independent System Operator (NISO) warned that under‑utilisation of the grid has cost the country over N2.376 trillion since 2015.