The federal government spent or subsidized electricity to the tune of N1.928 trillion in 2025, in order to bridge the gap between the actual cost of generating electricity and the amount paid by consumers.
The Nigerian Electricity Regulatory Commission (NERC) disclosed this in its 2025 electricity industry report.
According to the commission, the subsidy accounted for 57.44% of the total bill submitted by the Nigerian Bulk Electricity Trading (NBET), with an average monthly subsidy of N160.69 billion.
The report showed that N536.40 billion was allocated in the first quarter, N514.36 billion in the second quarter, N458.76 billion in the third quarter, and N418.79 billion in the fourth quarter.
The 2025 figure represents a slight decrease from the N1.949 trillion spent in 2024.
NERC stated that the reduction stemmed from a decline in the volume of electricity received by electricity distribution companies (DisCos), as well as an increased proportion of power supplied to Band A customers.
The commission said the share of electricity allocated to Band A and B customers rose from 40% to 45% in the fourth quarter of 2025.