The Federal Government says state governments will now jointly bear the cost of electricity subsidy along with the centre, following a directive by President Bola Tinubu to restructure how power subsidies are funded.
According to Vanguard, funding for electricity subsidies will be channelled through the Power Assistance Consumers Fund (PCAF), a government backed pool created to support low income and vulnerable households with targeted bill relief instead of blanket subsidies.
Director General of the Budget Office of the Federation, Tanimu Yakubu, disclosed the new policy at a 2026 Post Budget Preparation workshop in Abuja, saying states that enjoy the political benefits of low electricity tariffs must also help fill the financing gap created by subsidies.
In remarks delivered on his behalf by Director of Expenditure (Social), Yusuf Muhammed, Yakubu quoted the President as directing that a “clearer framework” be operationalised to share electricity subsidy costs across the federation so they are not treated as an “open ended” federal fiscal burden.
He explained that when tariffs are held below cost, the shortfall becomes a subsidy and “a subsidy is a bill,” adding that from 2026 the government will stop pretending that the entire bill can be left to the Federal Government alone.
Under the new approach, subsidy costs must be explicit, tracked and properly funded so they do not reappear as arrears, liquidity crises or hidden liabilities in the power market. Yakubu stressed that if any tier of government chooses an affordability intervention, its responsibility for that subsidy must be “clear, agreed and enforceable.”
He argued that when all tiers carry a fair share of the cost, they are more likely to support cost effective, efficiency targeted protection for vulnerable consumers and to back reforms that strengthen the electricity market.
Yakubu urged ministries, departments and agencies to ensure subsidies are reflected transparently in their plans and submissions, warning against pushing liabilities into the market as unpaid arrears or unfunded commitments. He also said Tinubu has ordered a review of Nigeria’s Fiscal Responsibility Framework to make fiscal rules more dynamic, enforceable and linked to measurable results.
The article notes that more than 18 states already operate their own electricity regulatory agencies, including Lagos, Ondo, Osun, Ekiti, Edo, Delta, Bayelsa, Akwa Ibom, Cross River, Abia, Anambra, Imo, Kogi, Niger, Nasarawa, Plateau, Gombe and Jigawa, with others preparing to follow.
Reacting, the Nigerian Governors’ Forum said it was still reviewing the details and would comment later, while several state electricity regulators held an emergency virtual meeting to study the implications of the directive.
Some experts, such as Centre for the Promotion of Private Enterprise CEO Muda Yusuf, backed the idea of states sharing subsidy costs, arguing that the Federal Government alone can no longer sustain a fast growing electricity subsidy bill that already runs into trillions of naira owed to generators and gas suppliers.
Others, including power sector advocate Bode Fadipe, questioned whether Abuja has the constitutional power to compel states to pay for subsidies, warning that any cost sharing framework must be voluntary, transparent and backed by clear rules rather than fiat or politically driven deductions from FAAC allocations
About the author
US waives Iran sanctions as Trump warns Tehran
The United States has waived sanctions on Iran for 60 days following the first round of talks linked to a new peace agreement. The waiver is part of an early step meant to ease tensions and support the talks. It allows Tehran to resume limited oil sales and receive payments during the 60-day period. US President Donald Trump said he would take action if Iran fails to respect the terms of the deal. He warned that Washington would respond if Tehran does not keep its side of the agreement. The move marks a temporary shift in US policy toward Iran and comes as both sides test the fragile peace process.
South African police probe murder of foreign national
South African police are investigating the murder of a foreign national in Pietermaritzburg after fresh fears of xenophobic attacks in the area. Police said a murder case has been opened and the circumstances surrounding the killing are still being examined. A local councillor said the victim was a 29-year-old Malawian national who was attacked after a protest on Friday. According to police, the man was found near a riverbank with injuries to his head and mouth. Authorities have not yet confirmed the motive for the attack. The incident comes as hundreds of Malawians reportedly gathered in the area to arrange repatriation, following concerns about violence targeting foreign nationals. The case has renewed attention on xenophobia in South Africa and the safety of migrants living in affected communities.
Asake and Wizkid’s MMS hits 100 million Spotify streams
Asake and Wizkid’s hit collaboration MMS has crossed 100 million streams on Spotify, marking a major global milestone for the Afrobeats stars.yorubafm+1 The achievement was revealed by a music tracking platform, which reported that MMS has now joined the Spotify 100 million streams club. The track has enjoyed strong streaming numbers since its release and continues to perform well with listeners in Nigeria and around the world.brandiconimage+3 Reports indicate that MMS is Asake’s eighth song and Wizkid’s 17th song to reach or surpass the 100 million streams benchmark on Spotify across all credits. The feat underlines the growing influence of both artists on the global Afrobeats scene and their ability to consistently deliver popular records.meiza+1 Music fans and industry watchers see the new milestone as further proof of Afrobeats’ expanding reach on international digital platforms. With MMS now above 100 […]
England and Ghana target last 32 as Portugal seek boost
England and Ghana are both aiming to secure a place in the World Cup last 32 when they meet in a Group L clash on Tuesday. England opened their campaign with a strong 4-2 win over Croatia, while Ghana began with a 1-0 victory over Panama. Both sides now sit on three points and know that another win could take them through to the knockout stage. The match is expected to be closely contested because both teams are in good position to qualify. England will be looking to build on their opening performance, while Ghana will hope to continue their strong start. In another major storyline from the tournament, Portugal are hoping to get their campaign back on track after a disappointing opening result. The team is under pressure to respond quickly and improve their chances of reaching the next […]
El-Rufai to file no-case submission as DSS closes case
Former Kaduna State Governor, Nasir El-Rufai, is expected to file a no-case submission after the Department of State Services closed its case in his alleged phone tapping trial. The development came during a hearing at the Federal High Court in Abuja. The prosecution informed the court that it would not call any more witnesses, which officially brought its case to an end. El-Rufai’s lawyer told the court that the defence would now challenge the case by arguing that the evidence presented was not enough to require the former governor to enter a defence. The matter has been adjourned for further proceedings, including the filing of the no-case submission. The case continues to draw public attention because it involves a former governor, the DSS, and allegations linked to phone interception and national security.
US deports Nigerian after domestic violence convictions
The United States has deported a Nigerian man after multiple criminal convictions, including domestic violence and other offences. According to US Immigration and Customs Enforcement, the man remained in the country after entering on a student visa nearly two decades ago. Authorities said he later built up a long criminal record that included domestic violence, trespassing, intimidation, obstruction, kidnapping, rape, and family neglect. ICE said the deportation was part of its ongoing enforcement against foreign nationals with serious criminal histories. The agency said the case shows the consequences of remaining in the country unlawfully while also committing repeated crimes. The development has drawn attention because it involves both immigration violations and violent offences. It also highlights the role of US authorities in removing non-citizens with serious criminal records from the country.
Related
South African police probe murder of foreign national
South African police are investigating the murder of a foreign national in Pietermaritzburg after fresh fears of xenophobic attacks in the area. Police said a murder case has been opened and the circumstances surrounding the killing are still being examined. A local councillor said the victim was a 29-year-old Malawian national who was attacked after a protest on Friday. According to police, the man was found near a riverbank with injuries to his head and mouth. Authorities have not yet confirmed the motive for the attack. The incident comes as hundreds of Malawians reportedly gathered in the area to arrange repatriation, following concerns about violence targeting foreign nationals. The case has renewed attention on xenophobia in South Africa and the safety of migrants living in affected communities.
El-Rufai to file no-case submission as DSS closes case
Former Kaduna State Governor, Nasir El-Rufai, is expected to file a no-case submission after the Department of State Services closed its case in his alleged phone tapping trial. The development came during a hearing at the Federal High Court in Abuja. The prosecution informed the court that it would not call any more witnesses, which officially brought its case to an end. El-Rufai’s lawyer told the court that the defence would now challenge the case by arguing that the evidence presented was not enough to require the former governor to enter a defence. The matter has been adjourned for further proceedings, including the filing of the no-case submission. The case continues to draw public attention because it involves a former governor, the DSS, and allegations linked to phone interception and national security.
US deports Nigerian after domestic violence convictions
The United States has deported a Nigerian man after multiple criminal convictions, including domestic violence and other offences. According to US Immigration and Customs Enforcement, the man remained in the country after entering on a student visa nearly two decades ago. Authorities said he later built up a long criminal record that included domestic violence, trespassing, intimidation, obstruction, kidnapping, rape, and family neglect. ICE said the deportation was part of its ongoing enforcement against foreign nationals with serious criminal histories. The agency said the case shows the consequences of remaining in the country unlawfully while also committing repeated crimes. The development has drawn attention because it involves both immigration violations and violent offences. It also highlights the role of US authorities in removing non-citizens with serious criminal records from the country.
Ebola cases rise above 1,000 in Congo
Ebola cases in the Democratic Republic of Congo have now passed 1,000, according to health updates from regional health authorities. The outbreak is being caused by the Bundibugyo strain of Ebola and is affecting parts of the country’s north-eastern region. Health officials say the situation remains serious, with more cases and deaths still being reported as surveillance and testing continue. The World Health Organization has already described the outbreak as a public health emergency that requires strong international coordination. Response teams are working to isolate confirmed cases, trace contacts, and support treatment efforts in affected areas. Officials have warned that the virus may spread further if the response is delayed or if communities do not seek care early. Health workers are also urging people to avoid contact with the sick, follow hygiene measures, and report symptoms quickly.
Court remands Sowore in Kuje Correctional Centre over cybercrime charge
Federal High Court in Abuja has ordered the remand of activist and African Action Congress (AAC) presidential candidate Omoyele Sowore at the Kuje Correctional Centre in the Federal Capital Territory. Justice Mohammed Umar of the court ruled that Sowore should remain in custody until Wednesday, when proceedings will resume on a two-count cybercrime charge filed by the Department of State Services (DSS). The charges centre on a social media post in which Sowore called President Bola Tinubu a “criminal”. The case has attracted public attention because of Sowore’s prominence as a long‑time human rights activist, former presidential candidate, and publisher of Saharareporters. His arrest and remand have also raised concerns about freedom of expression and the use of cyberspace laws against critics of the government. Sowore was previously remanded in Kuje Correctional Centre in 2021 over a similar social media […]
Troops kill two bandits, arrest four suspects in Kaduna
Troops operating in Kaduna State have killed two suspected bandits and arrested four others during a series of recent operations targeting criminal gangs in the state. The operations were carried out in identified flashpoints where bandits have been attacking rural communities and highways. In one of the operations, troops under Operation FANSAN YAMMA disrupted an attempted attack through a swift ambush in the Maraban Rido general area, neutralising at least one armed suspect and forcing others to flee. In a separate, intelligence‑led raid, security operatives also arrested four suspected bandits in Tayu, Sanga Local Government Area of Kaduna State. The suspects, identified as Abdumumini Abubakar, 40, Maikano Gambo, 47, Saleh Thompson, 47, and Oyonyi Odango, 40, were apprehended by operatives of the Force Intelligence Department – Special Tactical Squad on March 7, 2026. During the arrest, the team recovered a […]