Nigeria’s electricity subsidy bill skyrocketed to a historic ₦1.94 trillion in 2024
Nigeria’s electricity subsidy bill surged to a decade-high of ₦1.94 trillion in 2024, despite authorities implementing significant tariff hikes aimed at lightening the fiscal load, according to the Nigerian Electricity Regulatory Commission’s latest annual report. The figure marks the highest subsidy since 2014, covering 62.59% of the Nigerian Bulk Electricity Trading Plc’s revenue obligations.
The commission attributes the surge to conflicting policies and macroeconomic pressures. Although tariffs were raised, subsidy retention on high-cost generation sources—influenced by currency depreciation and inflation—continued to inflate government expenditure.
The report noted, “Power supply yet to improve,” underscoring that despite the multi-year tariff order (MYTO 2024), reliability remains poor. Industry stakeholders warn that the subsidy balloon highlights the fragile state of Nigeria’s electricity market.
Analysts argue that without resolving structural issues such as generation shortfalls, gas supply constraints, and FX volatility, the subsidy regime will remain unsustainable—even in the face of tariff reforms.