Nigerian Government to Share Electricity Subsidy Costs with Citizens to Stabilize Power Sector

The Nigerian government, through the Federal Budget Office, announced plans to implement a framework where Nigerians will share the cost of electricity subsidies to alleviate the financial burden on the government. This initiative is part of efforts to stabilize the power sector and ensure a more sustainable approach to funding subsidies.

The Director-General of the Budget Office, Tanimu Yakubu, emphasized the need for a stable power sector and highlighted the importance of cost-reflective tariffs to bridge the subsidy gap. The government aims to make subsidy costs explicit, transparent, and trackable to prevent the accumulation of arrears and hidden liabilities in the electricity market.

The move comes in the wake of mounting electricity subsidy debts, with arrears reaching trillions of naira by the end of 2024. President Bola Ahmed Tinubu's administration has initiated a bond program to clear the subsidy debts and address challenges in the power sector.