State govts to share electricity subsidy costs with FG — Presidency
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 […]