Federal government spent ₦3.14 trillion on electricity subsidies between June 2023 and December 2025 to shield consumers from the impact of higher power tariffs, according to figures released by the Ministry of Finance.
The outlay formed part of ₦30.64 trillion in additional spending pressures recorded over the 31-month period. Other major items included ₦9.39 trillion on wage adjustments, ₦9.37 trillion to cover the exchange-rate impact of external debt servicing, and ₦6.47 trillion on strategic infrastructure.
By December 2025, cumulative electricity subsidy spending had reached ₦1.47 trillion, representing a 1.14 per cent decline from the previous year, the data showed.
The government said the subsidies were intended to cushion electricity consumers from tariff increases as authorities pursue wider power-sector reforms.
The spending comes against the backdrop of broader economic adjustments, including the removal of petrol subsidy and foreign-exchange reforms. Those measures, according to the government, generated ₦15.8 trillion in additional resources for the Federation between June 2023 and December 2025. The funds were shared among the federal government, states and local governments.
The figures underline the continued fiscal cost of maintaining subsidised electricity tariffs even as the authorities seek to restructure the power sector.
