FG to Share Electricity Subsidy Costs with States from 2026

The Federal Government has announced plans to spread electricity subsidy costs across federal, state, and local governments starting in 2026, ending the long-standing practice of bearing the burden alone.

Tanimu Yakubu, Director-General of the Budget Office of the Federation, disclosed this during a workshop for ministries, departments, and agencies on the 2026 post-budget preparation process using the Government Integrated Financial Management Information System (GIFMIS) Budget Preparation Sub-System. He further stated that President Bola Tinubu directed that subsidy costs be explicit, tracked, and fairly shared, warning that the current approach creates hidden liabilities and recurring power market crises. He emphasized that the move is aimed at aligning incentives across government tiers, promoting efficiency, and ensuring cost-reflective tariffs.

Written by Adeyemi Adewale