By Peter Adelowo
President Bola Tinubu has indicated that electricity consumers may have to pay higher tariffs if the country is to achieve stable power supply.
The President has directed the Budget Office of the Federation to develop a clear framework for sharing the cost of electricity subsidies among the three tiers of government, rather than leaving the burden solely on the Federal Government.
Speaking at a training for Ministries, Departments and Agencies on the 2026 post-budget preparation, the Director-General of the Budget Office, Tanimu Yakubu, said when electricity tariffs are kept below cost, the shortfall becomes a subsidy that must be paid.
He stressed that from 2026, subsidy costs will be made explicit, tracked and properly funded to prevent arrears and financial crises in the power sector.
According to him, any government tier that chooses to introduce affordability measures must clearly state and fund its share of the cost.
The Budget Office also announced plans to end rollover budgeting and fragmented project lists, describing the 2026 budget as a single, coherent implementation framework aimed at improving transparency, accountability and delivery.
The Federal Government says the reforms are necessary to build a more efficient and sustainable power market.
