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Electricity subsidy: FG to deduct N3.6tn from Federation Account

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Electricity subsidy: FG to deduct N3.6tn from Federation Account

04 Feb, 2026

The Federal Government has proposed a N3.6tn deduction from the Federation Account to fund electricity subsidies in 2026, 2027, and 2028, a move designed to distribute the financial burden across federal, state, and local governments, The PUNCH reports. The move represents a decisive step by the Federal Government to confront the rapidly mounting electricity subsidy debt, which has severely constrained liquidity across the power sector, while also strengthening fiscal transparency by making subsidy obligations explicit and better accounted for...............................….......READ MORE