Abuja, Ikeja, Eko Discos Top as FG Incurs N1.92tn Subsidy Bill in One Year
Emmanuel Addeh in Abuja The federal government incurred a gross electricity subsidy obligation of N1.928 trillion throughout 2025 to bridge the wide gap between cost-reflective energy tariffs and allowed end-user
The Nigerian federal government incurred a gross electricity subsidy obligation of N1.928 trillion in 2025 to bridge the gap between cost-reflective energy tariffs and end-user billing rates, with Abuja, Ikeja, and Eko Electricity Distribution Companies (Discos) being the top receivers of this financial intervention. The Nigerian Electricity Regulatory Commission (NERC) revealed that the high spending persisted due to a policy directive freezing customer tariffs at approved rates, except those in band 'A'.
Abuja Disco had the highest absolute subsidy requirement, recording N278.37 billion, followed by Ikeja Disco with N267.37 billion and Eko Disco at N231.91 billion. Together, these three major utilities absorbed N777.65 billion, representing over 40 percent of the total subsidy burden. Other distribution companies like Ibadan, Benin, and Enugu Discos had gross subsidy requirements of N239.94 billion, N178.74 billion, and N166.42 billion respectively.
The quarterly breakdown of the overall national subsidy commitment showed a steady decline over the year.
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