Nigerian Government to End Sole Electricity Subsidy Responsibility by 2026

The Nigerian Federal Government, through the Ministry of Finance, is set to cease bearing the entire cost of electricity subsidies alone by 2026. Tanimu Yakubu, the Director-General, disclosed this during a sensitization workshop.

The new framework aims to require federal, state, and local governments to share the financial burden of electricity subsidies to enhance transparency and accountability in the power sector. The move is intended to properly track and distribute subsidies across the three tiers of government, ensuring fair allocation and preventing hidden liabilities.

The government is emphasizing the need for a transparent and practical enforcement of subsidy-sharing arrangements to avoid financial crises in the power sector. The initiative aligns with efforts to improve budgeting processes and financial management systems, promoting efficiency and cost reflection in electricity pricing to protect vulnerable consumers.