The Federal Authorities funded a good portion of Nigeria’s electrical energy era prices within the third quarter of 2025, absorbing near 60 per cent of whole bills to maintain the ability market secure, based on the Nigerian Electrical energy Regulatory Fee’s Q3 2025 report.
The report, launched on Tuesday, confirmed that authorities intervention amounted to N458.75 billion in subsidies through the interval, largely to offset weak funds from worldwide electrical energy shoppers and rising era prices.
On account of the subsidy, the Nigerian Bulk Electrical energy Buying and selling Plc bill payable by electrical energy distribution firms stood at N323.70 billion for the quarter. NERC famous that with out the Federal Authorities’s intervention, whole era prices would have risen to about N782.45 billion.
The subsidy, the regulator defined, was necessitated by the continued freeze on end-user electrical energy tariffs at July 2024 ranges, regardless of growing prices of energy era.
Though DisCos recorded slight enhancements in billing and assortment efficiency, total revenues remained pressured because of poor remittances from worldwide bilateral prospects. Throughout the quarter, the naira worth of whole power offtake by all DisCos reached N854.53 billion.
Out of this quantity, whole power billed stood at N706.61 billion, translating to a billing effectivity of 82.69 per cent. This represented a marginal enchancment of 1.08 share factors in comparison with the 81.61 per cent recorded within the second quarter of 2025. Regardless of the development, DisCos posted cumulative billing losses of N147.92 billion.
Income assortment through the interval totalled N570.25 billion, leading to a set effectivity of 80.70 per cent, a rise of 4.63 share factors from 76.07 per cent within the earlier quarter.
Nevertheless, total system losses remained elevated. NERC reported a weighted common Mixture Technical, Industrial and Assortment lack of 33.27 per cent throughout all DisCos, comprising technical and industrial losses of 17.31 per cent and assortment losses of 19.30 per cent.
This efficiency exceeded the 2025 Multi-12 months Tariff Order goal of 20.54 per cent by 12.73 share factors and translated right into a cumulative income lack of N108.75 billion. Nonetheless, the determine marked an enchancment of 4.65 share factors from the 37.92 per cent recorded within the second quarter.
Solely Eko and Ikeja electrical energy distribution firms met their ATC&C targets through the quarter, whereas Kaduna DisCo recorded the weakest efficiency, posting an precise ATC&C lack of 71.10 per cent in opposition to a goal of 21.32 per cent.
On upstream market obligations, DisCos have been issued a complete bill of N400.48 billion within the third quarter, consisting of N323.70 billion payable to NBET and N76.77 billion for transmission and administrative providers owed to the Market Operator.
Of this quantity, DisCos remitted N381.29 billion, leaving an excellent steadiness of N19.18 billion and reaching a remittance efficiency of 95.21 per cent, barely decrease than the 95.65 per cent recorded within the previous quarter.
Remittances from worldwide bilateral prospects remained weak, with solely $7.125 million paid out of the $18.69 million invoiced, representing a remittance charge of 38.09 per cent.
In distinction, home bilateral prospects paid N3.19 billion out of N3.64 billion billed, recording a stronger remittance efficiency of 87.61 per cent.
