FG to make states share electricity subsidy costs from 2026
Tanimu Yakubu, Director-General of the Budget Office, has announced a new framework for electricity subsidy sharing in Nigeria. The plan will require federal, state, and local governments to jointly bear the costs, ending the Federal Government’s sole responsibility. Bola Tinubu directed that subsidy costs be made explicit and fairly distributed. The move aims to increase transparency and efficiency in the power sector.
TLDR
- Tanimu Yakubu revealed that from 2026, electricity subsidy costs will be shared among all tiers of government, not just the Federal Government.
- Bola Tinubu instructed that subsidy costs must be tracked, explicit, and fairly allocated to avoid hidden liabilities and recurring crises.
- The new policy is designed to align incentives and promote efficiency, not as a sanction.
- MDAs are required to clearly reflect subsidy-related costs in their 2026 budget submissions.
- The 2026 Budget will also shift to a more coherent project management framework, with a focus on delivery and fiscal responsibility.
