Nigerian Lawmakers Push to End Electricity Subsidy to Strengthen Federal Revenue

Story: Written by Daniel February 10,2026
Members of the Senate Committee on Appropriations have advocated for the complete removal of the electricity subsidy, citing its strain on public finances and potential to boost federal revenue.
The call was made on Monday during a public hearing on the 2026 budget proposal at the National Assembly. Committee chairman, Senator Adeola Olamilekan of Ogun West, stressed that electricity sector reforms must include the full abolition of subsidies, describing them as a significant fiscal drain.
“Even after unbundling the power sector and empowering states to generate electricity, the federal government continues to spend trillions of naira on subsidies,” Olamilekan said. “Completing the unbundling and removing subsidies is essential to free up funds for other critical areas of national development.”
Lawmakers argued that ending the subsidy would not only improve government finances but also create space for investment in sustainable electricity infrastructure, ensuring long-term energy security for the country.