Amid its struggles to pay the over four trillion naira debt owed to power generation companies, the Federal Government incurred a total of 1.98 trillion naira in electricity subsidy obligations in 12 months, from October 2024 to September 2025.

This was according to the quarterly reports released by the Nigerian Electricity Regulatory Commission.

In the fourth quarter of 2024, covering October to December, the electricity subsidy incurred by the government was 471.69 billion naira, It was 536.4 billion naira in the first quarter of 2025 and 514.35billion naira in the second quarter of last year.

The latest report from NERC showed that the Federal Government incurred a power subsidy burden of 458.75 billion naira in the third quarter of 2025 as electricity tariffs remained below cost-reflective levels, making a total of 1.98 trillion naira in the 12-month period, from October 2024 to September 2025.

NERC stated in its reports that in the absence of cost-reflective tariffs, the government undertook to cover the resultant gap between the cost-reflective and allowed tariff in the form of tariff subsidies.

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