Tinubu orders MDAs to disclose electricity subsidy costs in 2026 budget

Wants burden of electricity subsidies shared so that no tier govt is left carrying hidden, unpaid costs

Says subsidy costs must be explicit, tracked, funded, so they do not return as arrears, liquidity crises or hidden liabilities

Emeka Agu with agency report

President Bola Ahmed Tinubu has directed all Ministries, Departments, and Agencies (MDAs) to use existing electricity sector laws to make the sharing of power subsidy costs among the Federal, State, and Local Governments clear, practical, and open in the 2026 budget process.

This was disclosed by the Director-General of the Budget Office of the Federation, Dr. Tanimu Yakubu, during a keynote address at the start of a training programme for MDAs on the 2026 post-budget preparation using the Government Integrated Financial Management Information System and the Budget Preparation System in Abuja on Monday.

Yakubu said the President wants the burden of electricity subsidies to be clearly shared so that no level of government is left carrying hidden or unpaid costs.

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 when any level of government decides to keep electricity prices low for citizens, the financial responsibility for that decision must be clearly agreed upon and enforced.

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.