Electricity subsidy falls 35% to N679bn in H1’26

By Yinka Kolawole

The Federal Government’s electricity subsidy bill fell 35.27 percent to N679.58 billion in the first half of 2026 from N1.05 trillion recorded in the corresponding period of 2025, as lower electricity off-take by distribution companies helped reduce the cost of keeping tariffs below cost-reflective levels.

The Nigerian Electricity Regulatory Commission (NERC) stated in its Q2 2026 report that the government’s subsidy obligation stood at N321.26 billion in the second quarter, down by N37.06 billion, or 10.34 percent, from N358.32 billion recorded in Q1.
The commission attributed the quarter-on-quarter decline primarily to a 3.40 percent reduction in electricity ...