Peter Obi. Image source: Vanguard News.
|
Getting your Trinity Audio player ready...
|
Claim: Peter Obi claimed that the Nigerian government removed both petrol and electricity subsidies but still resorted to borrowing.
Verdict: False. While the petrol subsidy was removed in 2023, NERC data shows that the electricity subsidy remains in place, as the government continues to fund the shortfall caused by non-cost-reflective tariffs.
Full Text
Nigeria removed its petrol subsidy in May 2023 under President Bola Tinubu. The policy change aimed to cut government spending and redirect funds to other areas of the economy.
The decision led to a sharp rise in fuel prices and increased transport and living costs across the country. Inflation followed, and many households felt the pressure in their daily expenses. As a result, public discussion around subsidies has remained active, especially regarding whether any form of subsidy still exists in other sectors, such as electricity.
Recently, a Facebook user alleged (archived here) that Peter Obi claimed the Nigerian government had removed the electricity subsidy.
The post featured Obi’s image with the caption, “FG has removed petrol and electricity subsidy but turned around to borrow more.”
As of April 24, 2026, the post had only two likes and one share, though we found a duplicate version here.
Despite the low engagement, the claim warranted closer scrutiny because statements attributed to prominent figures like Obi are often reused to push misleading narratives that can gain traction over time.
Given how frequently subsidy-related claims are misunderstood in Nigeria’s information space, DUBAWA decided to verify the claim.
Verification
DUBAWA began by searching for any verifiable record linking Obi to the claim that the Nigerian government removed the electricity subsidy. We found that Obi, during an interview on Arise Television, suggested that both petrol and electricity subsidies had been removed, but that the government still resorted to borrowing.
“This government came in, removed the subsidy because they didn’t want to; they were borrowing to service it. Removed the subsidy in petroleum, subsidy in electricity, and that the resources they will save will be used in development, and they turned around the charge and borrowed more,” Obi said.
Did the government remove the electricity subsidy?
DUBAWA’s findings show that the claim about the removal of the electricity subsidy is false. Data from the Nigerian Electricity Regulatory Commission (NERC) indicates that the Federal Government (FG) still pays substantial electricity subsidies due to non-cost-reflective tariffs.
In its Q4 2025 report, NERC stated that the government paid about N418.79 billion in electricity subsidies. This persists because electricity tariffs remain below the actual cost of generation, transmission, and distribution. As long as tariffs are not fully cost-reflective, the government continues to cover the shortfall, keeping the subsidy in place.
Available data from 2023 to 2025 also shows a pattern of continued subsidy payments.
| Quarter | Subsidy Amount (N billion) |
|---|---|
| Q3 2023 | 204 |
| Q4 2023 | 256 |
| Q1 2024 | 536.40 |
| Q2 2024 | 380 |
| Q3 2024 | 464.12 |
| Q4 2024 | 471.69 |
| Q1 2025 | 536.40 |
| Q2 2025 | 514.35 |
| Q3 2025 | 458.75 |
| Q4 2025 | 418.79 |
This table lists the quarterly electricity subsidy amounts the Nigerian government paid from 2023 to 2025.
While there are ongoing efforts to transition to a cost-reflective tariff regime, this process is gradual and not yet complete.
Recent policy discussions have indicated a shift toward sharing the subsidy burden among federal, state, and local governments, but this does not amount to a full removal of the subsidy. These policy modifications can create public confusion, as people may interpret a change in funding structure as a complete elimination of the subsidy.
Conclusion
Although Nigeria has removed the petrol subsidy, electricity subsidies remain in place. NERC data shows continued spending to cover the gap between actual electricity costs and what consumers pay. The claim that the electricity subsidy has been removed is, therefore, false.
