NERC disclosed the figure in its second-quarter 2026 report, attributing the decline largely to lower electricity off-take by distribution companies. The government continues to cover the gap between cost-reflective electricity tariffs and the rates paid by consumers because tariffs remain below the cost of supplying electricity.
The subsidy obligation stood at N321.26bn in the second quarter, representing a N37.06bn, or 10.34 per cent, decline from the N358.32bn recorded in the first quarter. NERC said electricity off-take by DisCos declined by 3.40 per cent between the two quarters.
The Q2 subsidy represented 49.60 per cent of the total invoices issued by electricity generation companies, compared with 51.95 per cent in Q1.
NERC also reported that DisCos remitted N306.62bn out of an N326.46bn Distribution Remittance Obligation-adjusted invoice issued by the Nigerian Bulk Electricity Trading Plc in Q2, representing a 93.92 per cent remittance performance. This was slightly below the 94.29 per cent recorded in Q1.
Seven DisCos — Benin, Eko, Enugu, Ibadan, Ikeja, Port Harcourt and Yola — achieved 100 per cent remittance performance to NBET during the quarter. Kano, Jos and Kaduna recorded the lowest rates, at 66.51 per cent, 62.39 per cent and 50.10 per cent respectively.
Your reaction
Story guide
Understand this story
Summary
Nigeria’s electricity subsidy obligation fell by 35.27 per cent to N679.58bn in the first half of 2026, according to the Nigerian Electricity Regulatory Commission. The Federal Government’s electricity subsidy obligation fell by 35.27 per cent to N679.58bn in the first half of 2026, from N1.05tn recorded in the corresponding period of 2025, according to the Nigerian Electricity Regulatory...
Key takeaways
- Nigeria’s electricity subsidy obligation fell by 35.27 per cent to N679.58bn in the first half of 2026, according to the Nigerian Electricity Regulatory Commission.
- The Federal Government’s electricity subsidy obligation fell by 35.27 per cent to N679.58bn in the first half of 2026, from N1.05tn recorded in the corresponding period of 2025, according to the Nigerian Electricity Regulatory Commission.NERC disclosed the figure in its second-quarter 2026 report, attributing the decline largely to lower electricity off-take by distribution companies.
- The government continues to cover the gap between cost-reflective electricity tariffs and the rates paid by consumers because tariffs remain below the cost of supplying electricity.The subsidy obligation stood at N321.26bn in the second quarter, representing a N37.06bn, or 10.34 per cent, decline from the N358.32bn recorded in the first quarter.
Article FAQ
What is this story about?
Nigeria’s electricity subsidy obligation fell by 35.27 per cent to N679.58bn in the first half of 2026, according to the Nigerian Electricity Regulatory Commission. The Federal Government’s electricity subsidy obligation fell by 35.27 per cent to N679.58bn in the first half of 2026, from N1.05tn recorded in the corresponding period of 2025, according to the Nigerian Electricity Regulatory...
Who published this story?
Glow 99.1 FM published this story with GlowRy Atuah listed as author.
When was it published?
October 5, 2026
