President Bola Ahmed Tinubu has directed all Ministries Departments and Agencies (MDAs) to rely on existing electricity sector laws to clearly define how power subsidy costs are shared among the federal, state and local governments in the 2026 budget.

The directive was disclosed by the Director-General of the Budget Office of the Federation, Dr Tanimu Yakubu, during the opening of a training programme for MDAs on the 2026 post-budget preparation process in Abuja on Monday.

Yakubu said the President wants electricity subsidy obligations to be transparent, practical and enforceable, so that no tier of government bears hidden or unpaid costs.

“Subsidy costs must be explicit, tracked and funded, so they do not return as arrears, liquidity crises or hidden liabilities in the power market,” he said.

He explained that whenever any level of government decides to keep electricity tariffs affordable, the financial responsibility for such interventions must be clearly agreed and enforced.

According to him, fair burden-sharing would promote efficiency in the power sector and strengthen support for protecting vulnerable consumers, while encouraging a sustainable electricity market.

Yakubu said MDAs must now fully disclose all subsidy-related costs in their budget proposals and avoid passing unpaid obligations into the power sector as debts that later disrupt electricity companies and consumers.

Beyond power subsidies, he said the Federal Government is reforming the 2026 budget process to focus on deliverable projects, stressing that only initiatives ready for implementation and financing should be proposed.

“If it cannot be implemented, it should not be proposed. If it cannot be measured, it should not be defended,” Yakubu said, warning that long lists of poorly planned projects often leave citizens disappointed rather than delivering tangible results.