Nigeria’s electricity subsidy obligation was N679.58 billion in six months, 35 per cent below a year earlier. The regulator ties the latest quarterly fall to less power being taken.

Atiku Abubakar has pledged to restore the petrol subsidy if he’s elected in 2027. Peter Obi told a bar association conference it shouldn’t return, though he faulted how the savings were spent. The Presidency called Atiku’s position confused.

A different subsidy is already being paid. The Nigerian Electricity Regulatory Commission’s second-quarter report, released on 29 September, puts the government’s electricity subsidy obligation at N321.26 billion for April to June. Over six months it’s N679.58 billion, 35.27 per cent below the N1.05 trillion of the first half of 2025.

NERC has explained how this works in earlier reports. Because tariffs don’t cover costs, the government pays the gap, and the payment is applied to what distribution companies owe for the power they take. NERC’s latest report says the subsidy exists because of the “absence of cost reflective tariffs across all DisCos.”

In the quarter, the subsidy covered 49.6 per cent of the generation companies’ invoices, down from 51.95 per cent in the first quarter. NERC gives one main reason for the N37.06 billion fall from the first quarter. Distribution companies took 3.4 per cent less power.

The National Bureau of Statistics reported separately that the electricity and gas sector shrank 10.63 per cent in real termsyear on year in the second quarter. It was the sector’s second straight fall. The coverage cited here doesn’t say whether NERC links the two. It also doesn’t say what explains the 35 per cent drop on a year earlier.

The distribution companies received electricity worth N946.57 billion in the quarter and billed customers N744.67 billion, according to the same Nairametrics report. That leaves N201.90 billion of power supplied and not billed. Of the N326.46 billion NBET invoiced them after the subsidy, they paid N306.62 billion, or 93.92 per cent.

Customers on the highest tariff are promised at least 20 hours of supply a day. For February and March, when gas shortages and vandalism cut generation, NERC ordered compensation for Band A feeders that averaged under 18 hours. For most customers it’s 20 per cent of the feeder’s approved energy cap.

Seven distribution companies paid everything they owed to the bulk trader NBET in the second quarter. Kano paid 66.51 per cent and Jos 62.39. Kaduna paid 50.10.