The President Bola Tinubu-led Federal Government says it spent N3.14 trillion on electricity subsidies between June 2023 and December 2025, according to figures contained in its latest economic reform scorecard.
The government said the intervention was designed to shield electricity consumers from the effect of tariff increases as reforms in the power sector continued.
The electricity subsidy was among N30.64 trillion in additional spending pressures incurred by the Federal Government during the 31-month period.
The figures were released by the Ministry of Finance following a presentation by Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, on Wednesday.
According to the ministry, electricity subsidy payments rose sharply from N177 billion in 2023 to N1.48 trillion in 2024, representing an increase of more than 740 per cent.
By December 2025, the subsidy bill stood at N1.47 trillion, indicating a marginal 1.14 per cent decline compared with the previous year.
Other major spending pressures recorded during the period included N9.39 trillion for wage adjustments, N9.37 trillion arising from the impact of exchange-rate movements on external debt servicing and N6.47 trillion for strategic infrastructure.
The government said it mobilised N20.4 trillion in additional resources to partly finance the increased expenditure.
The funds comprised N5.43 trillion from the Federal Government’s share of estimated subsidy savings, N3.12 trillion in additional revenues and N11.85 trillion raised through incremental borrowing.
Despite the additional resources, the government said there was still a funding shortfall of N10.24 trillion, which had to be accommodated within the existing revenue base.
The disclosure comes against the backdrop of the Federal Government’s plan to gradually withdraw electricity subsidies from 2027.
In July, Joseph Tegbe, Minister of Power, said the government had no immediate plan to increase electricity tariffs, explaining that subsidy payments would be gradually phased out from next year while ensuring that Nigerians continued to benefit from existing arrangements.
The Nigerian Electricity Regulatory Commission (NERC) had raised electricity tariffs for Band A customers in April 2024.
Under the revised tariff regime, Band A consumers, who are expected to receive a minimum of 20 hours of electricity supply daily, saw their rate increase from N66 to N225 per kilowatt-hour.
NERC said the tariff adjustment was expected to reduce the government’s subsidy burden by about N1.14 trillion in 2024.
(The CABLE)
Post A Comment: