Nigeria’s electricity subsidy may hit N2tn as FG freezes tariffs

The Federal Government may spend about N2 trillion on electricity subsidies in 2026 as it rules out an immediate increase in power tariffs.

According to Punch, Minister of Power Joseph Tegbe said the government wants to build a commercially viable electricity sector while protecting vulnerable consumers from higher costs.

The Nigerian Electricity Regulatory Commission reported that electricity subsidies reached N1.93 trillion in 2025, representing 57.44 per cent of the Nigerian Bulk Electricity Trading invoice and averaging N160.69 billion monthly.

Tegbe said the sector continues to face debt, revenue leakages, metering gaps, ageing infrastructure and gas supply constraints.

Generation companies receive only 27 per cent of their bills, while the government continues to improve collections, infrastructure and electricity service delivery nationwide.