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N3.14 Trillion Spent on Electricity Subsidy in 31 Months – FG
N3.14 Trillion Spent on Electricity Subsidy in 31 Months – FG
The Federal Government says the massive spending shielded consumers from the full impact of tariff hikes, but critics question the value amid persistent blackouts and plans to phase out subsidies by 2027.
The President Bola Tinubu-led Federal Government has disclosed that it spent N3.14 trillion on electricity subsidies between June 2023 and December 2025, according to figures contained in its latest economic reform scorecard. The government said the intervention was designed to protect electricity consumers from the full effect of tariff increases as reforms in the power sector continued.
The electricity subsidy was among N30.64 trillion in additional spending pressures incurred by the Federal Government during the 31-month period. The figures were released by the Ministry of Finance following a presentation by Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy.
According to the ministry, electricity subsidy payments rose sharply from N177 billion in 2023 to N1.48 trillion in 2024, representing an increase of more than 740 per cent. By December 2025, the subsidy bill stood at N1.47 trillion, indicating a marginal 1.14 per cent decline compared with the previous year.
Other major spending pressures recorded during the period included N9.39 trillion for wage adjustments and minimum-wage increases, N9.37 trillion arising from the impact of exchange-rate movements on external debt servicing, and N6.47 trillion for strategic infrastructure projects.
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The government said it mobilised N20.4 trillion in additional resources to partly finance the increased expenditure. The funds comprised N5.43 trillion from the Federal Government’s share of estimated petrol subsidy savings, N3.12 trillion in additional revenues, and N11.85 trillion raised through incremental borrowing. Despite these resources, the government said there was still a funding shortfall of N10.24 trillion, which had to be accommodated within the existing revenue base.
Despite the substantial subsidy spending, electricity supply deteriorated during the same period. According to the Nigerian Electricity Regulatory Commission (NERC), the Federal Government incurred an electricity tariff subsidy of N358.32 billion in the first quarter of 2026 alone. The subsidy bill averaged more than N119 billion per month as the government maintained its freeze on end-user electricity tariffs at July 2024 rates.
NERC explained that because electricity tariffs remain below cost-reflective levels, the government continues to subsidise the difference between the actual cost of power generation and the approved tariffs charged to consumers. Under the current Distribution Companies’ Remittance Obligation (DRO) framework, electricity generation companies invoiced the 11 DisCos a total of N689.72 billion during the quarter. However, only N331.40 billion was billed to the DisCos, leaving the government to cover the remaining N358.32 billion. The subsidy accounted for 51.95 per cent of the total generation invoice during the period.
The commission clarified that the lower subsidy payment in Q1 2026 did not result from the introduction of cost-reflective tariffs but rather from a decline in electricity purchased by the distribution companies during the quarter. According to the report, average available generation capacity fell by 17.45 per cent, dropping from 5,400.38MW in the fourth quarter of 2025 to 4,457.96MW in the first quarter of 2026. Total electricity generation also declined by 9.64 per cent to 8,883.47GWh.
The subsidy disclosure has drawn criticism from organised private sector groups. The Lagos Chamber of Commerce and Industry (LCCI) questioned the impact of the N15.8 trillion in petrol subsidy savings and criticised the N3.14 trillion electricity subsidy, saying it appeared to contradict the logic behind electricity tariff reforms and highlighted the high power costs that continue to burden businesses.
NERC has warned that the current subsidy regime leaves the Federal Government exposed to uncertain and potentially rising financial obligations. “The open-ended nature of the subsidy exposes the FGN to indeterminate subsidy obligations due to volumetric risk and changes in generation costs arising from changes in the generation mix, particularly with an increase in thermal generation,” the commission stated.
The disclosure comes against the backdrop of the Federal Government’s plan to gradually withdraw electricity subsidies from 2027. In July, Joseph Tegbe, Minister of Power, said the government had no immediate plan to increase electricity tariffs, explaining that subsidy payments would be gradually phased out from next year while ensuring that Nigerians continued to benefit from existing arrangements. “I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector,” Tegbe said.
The government has also proposed establishing a Power Consumer Assistance Fund (PCAF) , established under the Electricity Act 2023, as the preferred mechanism for delivering targeted subsidies directly to vulnerable electricity users. The initiative is designed to channel financial support through consumers’ electricity accounts or other verified identity-linked platforms, improving transparency in subsidy administration while boosting investor confidence in the sector.
However, analysts note that ending the subsidy without imposing another sharp tariff increase will require widespread metering, lower transmission and distribution losses, improved collections, reliable supply, and targeted protection for poorer households. The government is also working to clear debts owed to power generation companies, with GenCos reportedly owed about N6.5 trillion and receiving only about 35 per cent of their monthly invoices.
In April 2024, NERC raised electricity tariffs for Band A customers from N66 to N225 per kilowatt-hour. The affected consumers were expected to receive at least 20 hours of electricity daily, while the adjustment was projected to reduce the government’s subsidy burden by about N1.14 trillion in 2024. Despite this adjustment, the subsidy bill for 2024 and 2025 combined still reached nearly N3 trillion.
N3.14 Trillion Spent on Electricity Subsidy in 31 Months – FG
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President Tinubu Mourns 32 NAF Personnel in Ondo Jet Crash, Orders Immediate Probe
President Tinubu Mourns 32 NAF Personnel in Ondo Jet Crash, Orders Immediate Probe
President Bola Ahmed Tinubu has expressed profound grief over the crash of a Nigerian Air Force ATR-42 aircraft near a naval base in the Igbokoda area of Ondo State, which claimed the lives of all 32 personnel on board.
The tragic incident occurred on Monday morning when the aircraft, on a routine mission from Benin to Lagos, went down shortly before reaching its destination. The victims include 25 passengers and seven crew members.
In a statement released by his Special Adviser on Information and Strategy, Bayo Onanuga, the President described the incident as “a painful moment for our Armed Forces and for the entire nation.”
“Our Air Force personnel put their lives on the line every day to secure Nigeria. Their sacrifice will never be forgotten,” Tinubu said.
The President extended his deepest condolences to the families of the deceased, the Chief of the Air Staff, Air Marshal Sunday Kelvin Aneke, and the entire Nigerian Air Force community.
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President Tinubu revealed that he had received a briefing from the Chief of Air Staff and has directed an immediate and thorough investigation into the cause of the crash to prevent future occurrences.
“I have directed the Nigerian Air Force to immediately commence a thorough investigation into the cause of the crash to prevent future occurrences,” he stated.
The President commended the Nigerian Air Force for activating an immediate Search and Rescue operation following the accident, as well as the swift response of first responders and the Ondo State Government at the crash site.
“I pray for the repose of the souls of the gallant officers and for Almighty God to grant their families and the Nigerian Air Force the fortitude to bear the unfortunate loss,” Tinubu said.
He further assured the Nigerian Air Force of the continued support of his administration as they continue their vital role in securing the nation.
The crash marks one of the deadliest air disasters involving Nigerian military personnel in recent years, casting a shadow over the nation’s security apparatus. The Nigerian Air Force is expected to release further details as the investigation gets underway.
President Tinubu Mourns 32 NAF Personnel in Ondo Jet Crash, Orders Immediate Probe
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BREAKING: Many Feared Dead as Helicopter Crashes in Ondo Community
BREAKING: Many Feared Dead as Helicopter Crashes in Ondo Community
Several people are feared dead after a helicopter crashed in Igbokoda, headquarters of Ilaje Local Government Area of Ondo State, on Monday.
The incident occurred in the riverine community, triggering panic among residents as efforts began to establish the circumstances surrounding the crash and the fate of those on board.
Early reports indicate that the aircraft came down in a swampy area opposite a naval base in Igbokoda. The helicopter was reportedly badly damaged, with one local official saying military equipment was found at the scene.
The Chairman of Ilaje Local Government Area, Maurice Oripelaye, confirmed the crash when contacted by journalists but said the number of people aboard the aircraft could not immediately be established.
He reportedly said the helicopter had been burnt extensively, making it difficult to determine the number of occupants or confirm their identities.
The circumstances surrounding the crash remained unclear as of Monday afternoon. It was also not immediately established whether the aircraft was operated by the military, a private company or another organisation.
Some reports described the aircraft as a suspected military helicopter, based on the military equipment reportedly recovered from the crash site. However, authorities had not officially confirmed the identity or operator of the aircraft.
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The Ondo State Police Command also had not immediately confirmed the incident. Police spokesperson Abayomi Jimoh was reported to have said he was unaware of the crash when contacted and would make inquiries.
Reports from the community indicated that residents moved towards the crash area following news of the incident, while efforts were reportedly underway to assess the wreckage and establish whether there were survivors.
The number of people on board remains unknown, and no official casualty figure had been released at the time of filing this report.
The crash occurred in Ilaje, one of Ondo State’s major riverine and oil-producing areas. Igbokoda serves as the headquarters of the local government and is surrounded by waterways and swampy terrain.
The location is also used for logistics and transportation activities connected to the coastal and oil and gas industry, where helicopters are sometimes deployed to transport personnel and equipment.
The reported crash has renewed attention on the safety challenges associated with helicopter operations in Nigeria’s coastal areas, although the cause of Monday’s incident remains unknown.
Authorities are expected to establish the identity of the aircraft, its operator, flight route, number of occupants and the circumstances that led to the crash.
The Nigerian Safety Investigation Bureau (NSIB) is responsible for investigating aviation accidents and incidents within its jurisdiction, and further official information is expected as authorities assess the crash site.
For now, residents and families awaiting information about possible occupants are left without confirmed casualty figures or details of those involved.
Further updates are expected from the relevant security, aviation and emergency-response authorities as the investigation and recovery efforts continue.
BREAKING: Many Feared Dead as Helicopter Crashes in Ondo Community
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Supreme Court Ruling: INEC Moves to Clarify Fate of 2027 Candidates
Supreme Court Ruling: INEC Moves to Clarify Fate of 2027 Candidates
The Independent National Electoral Commission (INEC) has said it will determine how the recent Supreme Court ruling on the Electoral Act 2026 affects candidates after reviewing the certified true copy of the judgment.
The development has heightened uncertainty among some political parties and 2027 election candidates, particularly those whose nominations could be scrutinised over party membership registers and the procedures used to conduct their primaries.
The Supreme Court, in its September 24 judgment, restored Sections 77(5), 77(6), 77(7) and 84(2) of the Electoral Act 2026, which had earlier been struck down by the Court of Appeal. The provisions deal principally with political party membership registers and candidate nomination procedures.
Under Section 77(5), only members whose names appear on a party’s membership register submitted to INEC at least 21 days before a primary, congress or convention are eligible to participate in the exercise.
Section 77(6) requires parties to use the membership register submitted to INEC for their primaries, congresses and conventions, while Section 77(7) provides consequences for a party that fails to submit its register within the prescribed period.
Section 84(2), meanwhile, provides for the nomination of candidates through direct primaries or consensus.
The Supreme Court’s decision did not name or automatically disqualify any individual candidate. Questions surrounding particular nominations are expected to depend on the facts of each case, including party membership records, the timing of registration or defection and how the relevant primary was conducted.
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INEC has therefore refrained from announcing a blanket decision on candidates whose nominations could be affected.
The commission is expected to engage political parties and other stakeholders on October 6, while also addressing the issue publicly as preparations continue for the 2027 general elections. INEC is also expected to publish the final list of governorship and State House of Assembly candidates on October 10.
Several candidates have already attracted attention because of circumstances surrounding their party membership or nomination.
Among those mentioned are Kingsley Chinda, the APC governorship candidate in Rivers State; Isa Pantami, the PDP governorship candidate in Gombe State; Donald Duke, the PRP presidential candidate; Ovie Omo-Agege, the NDC senatorial candidate in Delta Central; and Victor Ochei, the NDC candidate for Delta North.
In Chinda’s case, questions have centred on the timing of his movement from the PDP to the APC and whether his membership status complied with the restored provisions before the party’s governorship primary.
The Rivers APC has maintained that Chinda registered with the party on April 27, ahead of the May 21 primary, and therefore met the relevant 21-day requirement.
Pantami’s case is also subject to separate legal proceedings. He left the APC for the PDP after withdrawing from the APC governorship primary and subsequently emerged as the PDP’s candidate in Gombe. A Federal High Court ruling in Gombe had already nullified his nomination and ordered a fresh primary, meaning his situation involves issues beyond the Supreme Court judgment alone.
For Omo-Agege and Ochei, attention has focused on their movement from the APC to the NDC and the waivers granted to enable them to contest the NDC nomination exercises. Their cases raise questions about the interaction between party membership, waivers and the restored provisions of the Electoral Act.
Former Inspector-General of Police Mohammed Abubakar Adamu, the SDP governorship candidate in Nasarawa State, has also insisted that his candidacy remains valid. The SDP has said he had been a member of the party for about three months before its governorship primary.
The key issue for INEC is whether nominations conducted while the disputed provisions were temporarily invalidated will be assessed under the provisions subsequently restored by the Supreme Court.
For now, the Supreme Court judgment should not be interpreted as an automatic cancellation of the affected candidates’ tickets.
The final position will depend on INEC’s review of the judgment, the relevant party records and the specific circumstances surrounding each nomination, as well as any separate court proceedings that may arise.
With the 2027 elections approaching, the commission’s forthcoming clarification is expected to provide greater certainty for political parties, candidates and other stakeholders over the status of nominations affected by the ruling.
Supreme Court Ruling: INEC Moves to Clarify Fate of 2027 Candidates
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