FG Releases Only 4% of N1.9 Trillion Electricity Subsidy, Deepening Sector Crisis

The Federal Government has paid just N76.95 billion of the N1.928 trillion budgeted for electricity subsidies in 2025. This 4% release leaves an N1.85 trillion funding gap. Quarterly data from the Nigerian Electricity Regulatory Commission show subsidy obligations of N536.40 billion in Q1, N514.36 billion in Q2, N458.76 billion in Q3 and N418.79 billion in Q4. January 2026 alone requires N126.48 billion. Analysts warn this underfunding is crippling power generation companies, as they cannot settle gas supplier bills. Reduced fuel supply has led to a noticeable drop in electricity output nationwide. Experts point to inadequate funding for the Nigerian Bulk Electricity Trading Plc as a key issue. Former NDPHC MD Chiedu Ugbo urges stakeholders to move past public debt disputes and work together on solutions. Former NBET MD Rumundaka Wonodi calls on the government to invest in transmission and gas infrastructure, ensure sustainable tariffs and fund NBET properly to stabilise the market.

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