The Federal Government spent N321.26 billion on electricity subsidies in the second quarter of 2026, representing a N37.06 billion decline from the N358.32 billion recorded in the first quarter.
The figure, contained in the latest quarterly report of the Nigerian Electricity Regulatory Commission (NERC), represents a 10.34 per cent reduction in the government’s subsidy obligation between the two quarters.
NERC attributed the decline mainly to lower electricity offtake by Distribution Companies (DisCos), which fell by 3.40 per cent during the period.
Government support covered 49.60 per cent of the total invoices issued to electricity generating companies in the second quarter, down from 51.95 per cent in Q1.
The report also showed that DisCos remitted N306.62 billion against an adjusted invoice of N326.46 billion issued by the Nigerian Bulk Electricity Trading Plc (NBET), representing a 93.92 per cent remittance rate.
Seven DisCos — Benin, Eko, Enugu, Ibadan, Ikeja, Port Harcourt and Yola — recorded full remittance to NBET during the quarter.
However, Kano, Jos and Kaduna recorded the lowest remittance rates at 66.51 per cent, 62.39 per cent and 50.10 per cent respectively.
On payments to the Market Operator, DisCos remitted N78.82 billion out of N83.92 billion billed, also representing a 93.92 per cent performance.
The electricity distributors also improved their revenue collection from customers during the quarter.
They collected N603.64 billion from N744.67 billion billed to customers, translating to an 81.06 per cent collection efficiency. This was higher than the 78.95 per cent recorded in Q1, when N597.56 billion was collected from N756.93 billion billed.
Benin DisCo recorded the highest collection efficiency at 92.68 per cent, followed by Ikeja at 92.20 per cent and Eko at 89.39 per cent.
Kano DisCo had the lowest collection efficiency at 47.74 per cent.
The latest figures highlight the relationship between electricity demand, DisCo remittances and the amount the Federal Government is required to cover under the electricity subsidy arrangement.
