Nigeria’s power sector crisis worsened after the Federal Government paid just ₦76.95 billion—about four percent—of the ₦1.928 trillion الكهرباء subsidy required in 2025.
Despite a budget of ₦958 billion for electricity subsidies, only a fraction was released, leaving an outstanding liability of about ₦1.85 trillion, according to data from the Nigerian Electricity Regulatory Commission.
Quarterly figures show subsidy obligations dropped from ₦536.40 billion in Q1 to ₦418.79 billion in Q4 of 2025, while January 2026 alone recorded ₦126.48 billion, highlighting a persistent funding gap.
Industry experts say the shortfall has crippled power generation companies, making it difficult for them to pay gas suppliers. This has led to reduced gas supply and a decline in electricity generation nationwide.
The crisis has also been linked to inadequate funding of Nigerian Bulk Electricity Trading Plc, the sector’s central offtaker.
Former NDPHC boss Chiedu Ugbo warned that public disputes over debt figures are worsening the situation, stressing the need for cooperation across the sector.
Similarly, former NBET Managing Director Rumundaka Wonodi emphasized that timely payments and stronger government funding are critical, noting that NBET acts as a proxy for the government and cannot function effectively without adequate financial support.
Analysts agree that without urgent intervention, including better funding, cost-reflective tariffs, and improved infrastructure, Nigeria’s electricity supply crisis may continue to deteriorate.
