Report: Band A Electricity Users Offset ₦101bn of Nigeria’s 2025 Power Subsidy

A new energy-sector analysis says Band A electricity customers effectively contributed about ₦101 billion in 2025 to offset subsidies for consumers in lower tariff bands. The report estimated Nigeria’s net electricity subsidy at ₦1.93 trillion, down from a gross requirement of about ₦2.03 trillion because Band A users paid slightly above the estimated cost of supplying them. Band B received an estimated ₦741 billion, or 38 per cent of the subsidy, while Band C received ₦609 billion, or 32 per cent. It said the pattern challenges the view that subsidies mainly protect the poorest consumers. Although Bands D and E have lower tariffs, they consume less electricity. The report also called for stronger transmission and distribution networks, reliable gas supply, lower losses and performance-based regulation for distribution companies.

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