Federal Government incurred N679.58 billion in electricity subsidy obligations in the first half of 2026, representing a 35.27 percent decline from the N1.05 trillion recorded in the corresponding period of 2025.
Gatekeepers News reports thatvNigerian Electricity Regulatory Commission (NERC) disclosed this in its second-quarter 2026 report.
According to the report, the government’s subsidy obligation stood at N321.26 billion in the second quarter, down from N358.32 billion recorded in the first quarter of the year.
NERC said the Q2 figure represented a N37.06 billion, or 10.34 percent, reduction from the previous quarter. The commission attributed the decline mainly to a 3.40 percent reduction in electricity offtake by distribution companies (DisCos) between Q1 and Q2.
The commission said the N321.26 billion subsidy represented 49.60 percent of the total invoices issued by electricity generation companies (GenCos), compared with 51.95 percent in Q1.
NERC said the Nigerian Bulk Electricity Trading (NBET) invoice to DisCos stood at N326.46 billion in Q2, while total remittances amounted to N306.62 billion, representing a 93.92 percent remittance performance.
In comparison, DisCos remitted N312.48 billion out of an N331.40 billion invoice in Q1, representing 94.29 percent.
Seven DisCos — Benin, Eko, Enugu, Ibadan, Ikeja, Port Harcourt and Yola — achieved 100 percent remittance performance to NBET during the second quarter.
However, Kano, Jos and Kaduna DisCos recorded remittance rates below 70 percent, at 66.51 percent, 62.39 percent and 50.10 percent respectively.
NERC also reported that DisCos remitted N78.82 billion against N83.92 billion invoiced by the Market Operator for energy transmission and administrative services in Q2, representing a 93.92 percent remittance performance.
