Nigeria Electricity Regulatory Commission Releases Worrisome Statistics

The Nigerian Electricity Regulatory Commission (NERC) has released its Second Quarter Report for 2025, and the statistics are somewhat of a concern.

It shows amongst others, an outstanding power subsidy payment to electricity generation companies the sum of N1.05tn, covering the first and second quarters of the year.

The government incurred a subsidy debt of N536.40bn in Q1 of the year, and N514.35bn in Q2 bringing the total to over N1.05tn in the first six months of the year.

“In the absence of cost-reflective tariffs, the government undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff subsidies,” the report stated.

“The subsidy is only applied to the generation cost payable by DisCos to the Nigerian Bulk Electricity Trading Plc at source in the form of a DisCo’s Remittance Obligation.”

“Due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of N514.35bn,” the report said.

It has to be noted too that a decrease in the subsidy obligation of the government in naira terms (-N22.04bn), it accounted for 59.60 per cent of the total GenCo invoice, which is a 0.44 percentage point increase compared to 2025/Q1.

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GenCos invoiced N863.02bn for energy supplied to DisCos, while the DRO-adjusted invoice from NBET to the DisCos was N348.66bn, according to the report, even as total remittance from DisCos stood at N333.90bn.

According to the Electricity Regulatory Commission, this resulted in a 95.77 per cent remittance performance, slightly below the 95.79 per cent recorded in the first quarter, the electricity regulatory commission’s statistics showed.