Tinubu Orders Clear Sharing of Electricity Subsidy Costs in 2026 Budget
President Bola Ahmed Tinubu has directed all Ministries, Departments and Agencies (MDAs) to rely on existing electricity sector laws to clearly spell out how electricity subsidy costs will be shared among the Federal, State and Local Governments in the 2026 budget.
The directive was disclosed by the Director-General of the Budget Office of the Federation, Dr Tanimu Yakubu, during his keynote address at the opening of a training programme for MDAs on the 2026 post-budget preparation process, held in Abuja on Monday.
The programme focused on strengthening the use of the Government Integrated Financial Management Information System (GIFMIS) and the Budget Preparation System.
Yakubu said the President is keen on ensuring transparency in electricity subsidy obligations, stressing that costs must be properly allocated to avoid hidden liabilities within the power sector.
According to him, subsidy expenses must be clearly stated, monitored and adequately funded to prevent them from resurfacing as arrears, liquidity challenges or unaccounted liabilities in the electricity market.
He explained that whenever any tier of government decides to keep electricity tariffs low, the financial consequences of such a decision must be clearly defined, agreed upon and enforced across all levels of government.
Yakubu added that affordability interventions are not meant as punitive measures but as a way to ensure proper alignment and shared responsibility among the tiers of government.
Blessing Anolaba
Editorial & Creative Correspondent
A storyteller and journalist passionate about telling stories for policy change and impact.
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