FG says electricity subsidy gulped N3trn in 31 months 

The Federal Government says it spent ₦3.14 trillion on electricity subsidies between June 2023 and December 2025, representing a 31-month period.

According to figures contained in the Federal Government’s Nigeria Reform Scorecard, the subsidy was provided to cushion electricity consumers from the impact of tariff increases.  

The expenditure reportedly rose from ₦177 billion in 2023 to ₦1.48 trillion in 2024, while about ₦1.47 trillion was recorded in 2025.

The government said the electricity subsidy was part of ₦30.64 trillion in incremental expenditure pressures incurred during the period, alongside spending on wage adjustments, external debt servicing and strategic infrastructure.  

The disclosure comes amid plans by the Federal Government to phase out electricity subsidies from 2027, with authorities saying the move is necessary to make the power sector financially sustainable.