FG Subsidizes N1.928 Trillion for Electricity Tariffs in 2025 Amid Idle Capacity
The Federal Government of Nigeria subsidized N1.928 trillion in 2025 due to a gap between cost-reflective and allowed tariffs in the electricity sector. The report highlights significant underperformance in electricity generation capacity, with over 60% idle and only 39.62% availability from grid-connected plants.
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In 2025, the Federal Government of Nigeria paid a subsidy of N1.928 trillion to cover the shortfall between cost-reflective and allowed electricity tariffs under the Nigerian Electricity Supply Industry framework. The electricity distribution companies (DisCos) received a gross invoice of ₦1.721 trillion from the Nigerian Bulk Electricity Trading Company, remitting ₦1.632 trillion, resulting in a market shortfall of ₦89.58 billion.
The average available generation capacity was 39.62%, meaning over 60% of installed capacity was idle. Hydropower contributed 12,804.18 GWh, accounting for 32.66% of total generation. International customers invoiced $73.91 million paid 84.90% of their dues. DisCos like Eko and Ikeja achieved 100% remittance, while Kaduna DisCo performed the lowest at 40.13%.
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