The federal government has incurred N321.26bn as electricity subsidy in the second quarter of 2026.
According to the quarterly report from the Nigerian Electricity Regulatory Commission (NERC) this represents a N37.06bn or 10.34 per cent reduction in subsidy compared to the N358.32bn for Q1 2026.
The report stated that government subsidies accounted for 49.60 per cent of the total GenCo invoice, which is a 2.35 per cent decrease compared to Q1, when the subsidy accounted for 51.95 per cent of the total GenCo invoice.
It said the primary driver of this reduction in FGN subsidy obligation is the decrease in energy offtake of the DisCos by 3.40 percent between Q1 and Q2.
‘In 2026/Q2, the DRO-adjusted invoice from NBET to the DisCos was N326.46bn while the total remittance made was N306.62bn, which translates to 93.92 percent remittance performance. Comparatively, in Q1, the DRO-adjusted invoice from NBET to DisCos was N331.4bn and the total remittance was N312.48bn, which translated to 94.29 percent remittance performance.
It added that seven DisCos (Benin, Eko, Enugu, Ibadan, Ikeja, Port Harcourt and Yola) achieved 100% remittance to NBET, with Kano (66.51%), Jos (62.39%) and Kaduna (50.10%) DisCos achieved less than 70% remittance rate for the quarter.
It added that a quarter-on-quarter analysis showed that Yola (16.45pp), Ibadan (6.38pp), Kaduna (5.52pp), and Enugu (0.68pp) DisCos recorded improvements in remittance performance to NBET while Kano (-18.66pp), Jos (-4.71pp) and Abuja (-1.02pp) DisCos recorded decreases in remittance performance in 2026/Q2 compared to 2026/Q1.
It also said DisCos made a total remittance of N78.82bn against the cumulative invoice of N83.92bn issued by the Market Operator.
‘This payment translates to 93.92% remittance performance and represents an increase of 0.64pp when compared to 93.28% remittance performance recorded in 2026/Q1 when DisCos remitted N83.74bn out of the N89.78bn invoice issued by the MO.
‘The disaggregated remittance performance of the DisCos to the MO shows that all the DisCos except Abuja (99.93%), Yola (99.34%), Ibadan (98.73%), Kano (69.72%), Jos (67.09%) and Kaduna (57.86%) recorded 100% remittance,’ the report said.
For revenue collected by all DisCos, N603.64bn was collected out of the N744.67bn that was billed to the customers.
‘This translates to a collection efficiency of 81.06%. In comparison, the total revenue collected by all DisCos in 2026/Q1 was N597.56bn out of the N756.93bn billed to customers, which translated to a 78.95% collection efficiency. This means that at an aggregate level, DisCos recorded a 2.11pp increase in collection efficiency between 2026/Q1 and 2026/Q2.’
‘In 2026/Q2, Benin DisCo recorded the highest collection efficiency of 92.68% while five (5) other DisCos recorded collection efficiencies greater than 80.00% (Ikeja; 92.20%, Eko; 89.39%, Port Harcourt; 87.27%, Abuja; 83.45%, and Ibadan; 80.33%). Conversely, Kano DisCo recorded the lowest collection efficiency at 47.74%.
‘A comparison of DisCos’ performance shows that Enugu (9.03pp), Benin (7.52pp), Kaduna (6.35pp), Port Harcourt (6.05pp), Ibadan (5.22pp), Abuja (2.56pp) and Ikeja (2.20pp) DisCos recorded improvements in collection efficiency between 2026/Q1 and 2026/Q2. Conversely, the remaining four (4) DisCos recorded declines in collection efficiency, with Kano (-15.02pp) DisCo having the most significant decline across the quarters,’ it said.