Nigerian GenCos Criticize N1.1tn Power Budget for 2026 Over Lack of Subsidies

Nigerian power generation companies (GenCos) have criticized the N1.1tn power budget for 2026, as it lacks subsidies for electricity tariffs. The budget, higher than the 2025 allocation, does not include explicit earmarks for tariff support or subsidy payments.

This absence of support has led to a significant financial burden on GenCos, with the federal government incurring substantial electricity subsidy obligations. Stakeholders, including GenCos, have raised concerns about the financial implications and the government's failure to fulfill subsidy obligations, resulting in a rise in legacy debts.

The Nigerian Electricity Regulatory Commission (NERC) has emphasized the unsustainable nature of electricity subsidies. Adebayo Adelabu, Minister of Power, has reiterated the need to address the subsidy issue.