The Federal Authorities’s subsidy funds to electrical energy distribution firms have risen sharply, with excellent money owed now standing at ₦982.4 billion as of Could 2025.
This marks a rise of ₦5.3 billion, or 2.7%, from the January determine.
Knowledge sourced from the Nigerian Electrical energy Regulatory Fee (NERC)’s month-to-month Multi-12 months Tariff Orders (MYTO) reveals a fluctuating development in subsidy funds—beginning at ₦196.44bn in January, dipping barely in February and March, earlier than climbing to ₦201.75bn in Could.
The rise in subsidy is attributed to greater era prices and ongoing volatility within the overseas trade market.
Regardless of efforts to reform the ability sector, the federal government continues to shoulder roughly 50% of the cost-reflective tariff for electrical energy customers on Bands B to E. Whereas Band A clients pay over ₦210/kWh, others pay a mean of ₦118/kWh.
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A breakdown of the MYTO for Could reveals main subsidy allocations to key DisCos:
Ibadan: ₦24.59bn (up from ₦24.29bn in April)
Abuja: ₦28.99bn (up from ₦28.64bn)
Eko: ₦23.45bn
Ikeja: ₦27.85bn
Port Harcourt: ₦14.94bn
Jos: ₦12.81bn
Yola: ₦8.05bn
Benin: ₦16.11bn
Enugu: ₦15.69bn
Kano: ₦14.43bn
Kaduna: ₦14.79bn
In the meantime, efforts to resolve the sector’s mounting debt—now over ₦4 trillion—have stalled. A proposed assembly between President Bola Tinubu and electrical energy era firms (GenCos), championed by the Minister of Power, Adebayo Adelabu, is but to materialize.
The assembly, geared toward discovering an answer to the sector’s liquidity disaster, has been repeatedly delayed, with the most recent postponement linked to the upcoming Eid holidays and the President’s journey plans.
