President Bola Ahmed Tinubu has directed all Ministries, Departments, and Agencies (MDAs) to rely on existing electricity sector laws to clearly define 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 a keynote address at the opening of a training programme for MDAs on the 2026 post-budget preparation process in Abuja on Monday. The programme focused on the use of the Government Integrated Financial Management Information System and the Budget Preparation System.
Yakubu said the President wants electricity subsidy obligations to be transparent and properly allocated to prevent hidden liabilities within the power sector.
“Subsidy costs must be explicit, tracked and funded, so they do not return as arrears, liquidity crises or hidden liabilities in the power market,” he said.
He explained that whenever any tier of government chooses to keep electricity tariffs low, the financial implications of such a decision must be clearly agreed upon and enforced across all levels.
“It also means that if any tier of government chooses affordability interventions, the funding responsibilities must be clear, agreed, and enforceable. This is not punishment. It is alignment,” Yakubu said.
