Bola Tinubu Directs States to Share Electricity Subsidy Costs, Aims to Stabilize Power Sector

Bola Tinubu, through a directive, has instructed 18 states, including Lagos, Ondo, and Ekiti, to contribute to funding electricity subsidies alongside the federal government. The aim is to support low-income and vulnerable households by ensuring affordable electricity amid tariff hikes.

Yusuf Muham Yakubu, the Director of Expenditure at the Budget Office, emphasized the need for a new framework where subsidy costs are transparently identified and tracked. The Nigerian Governors Forum and state electricity regulatory agencies are reviewing the directive, with discussions on cost-sharing arrangements to ease the burden on the federal government.

Experts like Wumi Iledar and Emmanuel Egbogah view this move as a significant fiscal and political development aligned with recent electricity reforms. The shift towards state involvement in funding electricity subsidies is seen as a necessary step to ensure sustainability and efficiency in the power sector.