Nigeria's Electricity Subsidy Fell 37.5% in a Year as the Cost per Kilowatt-Hour Dropped

Nigeria's federal electricity tariff subsidy was ₦321.26 billion for April to June 2026, according to the Nigerian Electricity Regulatory Commission's second-quarter report. That is ₦193.09 billion, or 37.5%, less than a year earlier, with end-user tariffs still frozen at July 2024 rates.

NERC attributes the latest quarterly decline to lower DisCo offtake. Across the full year, TEI's decomposition of NERC's own totals gives a different weighting: about 63% of the fall came from a lower GenCo invoice per kilowatt-hour, which dropped from ₦110.30 to ₦92.77, and about 29% from the 10.8% fall in energy received by DisCos. The remaining 8% came from DisCos covering more of each unit after the Band A allocation rose from 40% to 45%.

Customer cash moved the other way. DisCo collections rose 6.9% to ₦603.64 billion and now equal 93% of the GenCo bill, up from 65%. The cash NBET actually received from DisCos still trailed the federal obligation by ₦14.64 billion.

Cross-border customers in Benin, Togo and Niger paid 46% of their Market Operator invoices. The full analysis covers the monthly series, which fell below ₦100 billion for the first time in June 2026.