FG electricity subsidy drops to N321.26bn in Q2 2026 as DisCos offtake falls
FG electricity subsidy dropped by N37.06 billion to N321.26 billion in the second quarter of 2026, down 10.34% from N358.32 billion in Q1, according to NERC. The decline stemmed mainly from a 3.40% fall in electricity offtake by distribution companies (DisCos), as tariffs remained below supply costs.
This matters because the subsidy now covers 49.6% of the N647.72 billion GenCo invoices incurred by the 11 DisCos in Q2, down from 51.95% earlier. DisCos received electricity valued at N946.57 billion but billed customers only N744.67 billion, leaving N201.90 billion unbilled. Their remittance to NBET slipped to 93.92% (N306.62 billion of N326.46 billion invoiced), from 94.29% in Q1. Abuja DisCo recorded the highest GenCo invoice at N106.67 billion, followed by Ikeja (N104.59bn) and Ibadan (N79.79bn); Yola had the lowest at N16.96 billion.
The Minister of Power said there is no immediate plan to raise electricity tariffs, with focus instead on improving supply and market discipline. Persistent billing losses and weak remittance suggest sector revenue challenges continue. Consumers should watch for potential future tariff adjustments or subsidy reforms, and consider how DisCos’ collection efficiency affects reliability and pricing in their area.