Minister Tegbe announces N2 trillion electricity subsidy plan

The Federal Government is projected to spend approximately N2 trillion on electricity subsidies in 2026 while keeping electricity tariffs unchanged, as stated by Minister of Power Joseph Tegbe during a media event in Abuja marking his first 100 days in office. Tegbe emphasized that there are no immediate plans to raise electricity tariffs, aiming instead to create a commercially viable power sector while safeguarding vulnerable consumers.

This decision follows a subsidy obligation of N1.93 trillion incurred in 2025, which represented 57.44% of the total Nigerian Bulk Electricity Trading invoice for that year. The Nigerian Electricity Regulatory Commission reported that the government covers the gap between cost-reflective and allowed tariffs through subsidies.

Despite the introduction of a tariff categorization system in 2024, the subsidy burden has remained high, nearing N2 trillion in recent years. Additionally, the Association of Power Generation Companies expressed concerns about the Federal Government's N4 trillion Presidential Power Sector Debt Reduction Programme, warning of accumulating liabilities exceeding N7 trillion.