By Atoyebi Nike
The Nigerian government spent ₦1.95 trillion in 2024 to cover electricity tariff shortfalls, according to the Nigerian Electricity Regulatory Commission (NERC). The subsidy arose from the gap between actual tariffs and the cost of supplying power.
Despite rising Discos’ revenues ₦199.85 billion collected in April 2025 from ₦257.57 billion billed collection efficiency stood at 77.6%, boosted largely by higher Band A tariffs, now at ₦209/kWh.
However, total energy supplied dropped 9.2%, and collection shortfalls continue, with a ₦260 billion under-recovery recorded by April.
ATC&C losses averaged 39.6% in Q1 2025, nearly double the 20.5% benchmark, costing the sector ₦200.5 billion in lost revenue.
