Amid Blackouts, Nigeria Spends N4.9tn On Electricity Subsidy In Five Years

The Federal Government incurred N4.9tn in electricity subsidy bills between 2021 and 2025, accounting for 55 per cent of the country’s total electricity invoices over the five years, despite persistent power shortages and repeated national grid collapses.

THE WHISTLER’s analysis of data published by the Ministry of Finance shows that the government’s electricity subsidy invoice rose from N251.07bn in 2021 to N1.929tn in 2025, with the biggest increases recorded in the last two years.

The figures show that FG’s subsidy invoice stood at N151.08bn in 2022, before rising to N631.4bn in 2023. It subsequently climbed to N1.941tn in 2024 and N1.929tn in 2025.

According to the data reviewed for this report, the actual total invoices for electricity in the country in 2021 stood at N817bn; in 2022 it stood at N808bn, N1.3tn in 2023; N2.9tn in 2024; and N3.1tn in 2025. These amount to N8.9tn in five years.

This would mean that in 2021, the federal government got an invoice of 30.7.% worth of the country’s electricity bill. In 2022, it got an electricity subsidy invoice equivalent to 18.6% of the country’s total electricity invoice; the percentage rose to 48.5%, 66.9% in 2024 and 62.2% in 2025.

In total, 55% of Nigeria’s electricity bill invoices have gone to the federal government in the last five years. This is calculated as N4.9 trillion in invoices received by the government as a percentage of the country’s total N8.9 trillion electricity bill.

Abuja Electricity Distribution Company (Disco) recorded the highest electricity subsidy bill between 2021 and 2025 with a sum of N663.10 billion posted, Ikeja Disco followed with N660.7 billion, Ibadan Disco recorded N613.58 billion, Eko Disco posted N564.96 billion, Benin Disco N449.9 billion, Enugu Disco N407.5 billion, Port Harcourt Disco N378.2 billion, Kaduna Disco N321.5 billion, Jos Disco N310.7 billion, Kano Disco N310.5 billion and Yola Disco N223.1 billion.

Over time, Nigerians have experienced blackouts and epileptic power supplies despite many government promises.

A report by THE WHISTLER earlier noted that fifteen state governments spent a combined N3.47bn on the maintenance of plants and generators in the first six months of 2026, highlighting the continued dependence of public institutions on alternative power sources amid Nigeria’s persistent electricity crisis.

The expenditure was contained in the second-quarter 2026 budget implementation reports of the 15 states reviewed by THE WHISTLER, which showed that the states collectively budgeted N13.77bn for plant and generator maintenance for the year.

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Previously, electricity Distribution Companies (DisCos) apologised to Nigerians over persistent electricity shortages across the country, acknowledging the hardship caused by weeks of prolonged blackouts.

Managing Director and Chief Executive Officer of the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, tendered the apology on Monday during an appearance on Channels Television’s Sunrise Daily.

“I’d like to first of all start by apologising to Nigerians. Apology is needed; it is essential because Nigerians have been taken through this problem over the past few weeks,” he said.

There have been controversies over payment of electricity subsidy by the Nigerian government, with concerns that payments have not truly translated to more adequate electricity provision in the country.

On September 10, 2025, it was reported that the national grid collapsed, plunging the country into darkness.

Similarly, in March 2025, the national power grid suffered another major collapse that affected several parts of the country, including Lagos. The incident occurred just days after the Federal Government celebrated what it described as a “historic rise” in power generation to 6,000MW.

However, that celebration was short-lived, as a sudden grid disturbance caused power generation to plummet below 1,000MW, down from approximately 4,000MW recorded earlier before the incident.

In January 2026, Nigeria’s national power grid collapsed, plunging parts of the country into widespread electricity outages.

The Nigerian Independent System Operator (NISO) was quoted as saying that power supply to all 11 electricity distribution companies (DisCos) dropped to zero megawatts at exactly 11 am, indicating a total system failure.

The sudden collapse triggered immediate blackouts across several states, disrupting homes, businesses and public services nationwide.