Index to Nigerian Newspapers

The Federal Government plans to deduct N3.6 trillion from the Federation Account to fund electricity subsidies for 2026-2028, addressing the rising electricity subsidy debt that affects liquidity in the power sector. This initiative aims to ensure fiscal transparency and distribute costs among federal, state, and local governments. The Medium-Term Expenditure Framework indicates an electricity subsidy of N1.2 trillion annually through 2028. The Budget Office, aligned with President Tinubu's directive, emphasizes that future subsidy costs must be explicit and shared across all governmental levels, as accumulating debts have stressed federal finances. The current subsidy system, where the Federal Government finances gaps via the Nigerian Bulk Electricity Trading Plc, is deemed unsustainable and will be revised to prevent hidden liabilities and liquidity crises in the sector.