Electricity Subsidy Dips to ₦358bn in Q1 2026 as DisCos Cut Power Offtake

The Nigerian Electricity Regulatory Commission’s Q1 2026 report shows the Federal Government spent ₦358.32 billion on electricity tariff subsidies to keep consumer rates below the true cost of supply. This amount is 14.44% lower than the ₦418.79 billion recorded in Q4 2025. NERC attributes the drop mainly to an 8.56% reduction in electricity offtake by distribution companies, not to better tariff recovery. Generation companies invoiced ₦689.72 billion for power supplied to the 11 DisCos. DisCos were billed ₦331.40 billion, leaving the government to cover the ₦358.32 billion shortfall, or 51.95% of the total invoice. Customer billing rose to ₦756.93 billion, but collection efficiency dipped slightly to 78.95%. Ikeja DisCo led with 90.00% efficiency, while Kaduna DisCo recorded the lowest at 45.81%.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.