The Nigerian Electricity Regulatory Commission (NERC) says the Federal Government is set to N358.32bn on electricity subsidies, with an average monthly subsidy bill of N119bn.

The Commission disclosed this in its First Quarter 2026 report, stating that due to “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.”

According to the report, the tariff shortfall stood at N126.48bn in January, N116.34bn in February and N115.50bn in March, bringing the total subsidy for the quarter to N358.32bn.

NERC explained that although there was a reduction in the subsidy by N60.46bn or 14.44 per cent from the N418.79bn recorded in the fourth quarter of 2025, the government will still finance more than half of the industry’s generation costs.

“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of N358.32bn; this represents a N60.46bn (-14.44 per cent) reduction in FGN subsidies compared to 2025/Q4 (N418.79bn).

“The government subsidy accounted for 51.95 per cent of the total GenCo invoice, which is a 0.08pp decrease compared to 2025/Q4, when the subsidy accounted for 52.03 per cent of the total GenCo invoice. The key driver of this reduction in FGN subsidy obligation is the decrease in energy offtake of the DisCos by -8.56 per cent between 2025/Q4 and 2026/Q1.”