Find out more as senators plan another subsidy removal after petrol

• Nigerian lawmakers are pushing for the paunchy elimination of electricity subsidies to rob authorities income
• If here’s develop it’s expected to develop how worthy Nigerians currently pay for energy
• Senate Appropriations Committee chairman Adeola Olamilekan talked about subsidy elimination is crucial to funding the 2026 budget

Legit.ng journalist Dave Ibemere has experience in commercial journalism, with in-depth data of the Nigerian economic system, shares, and never original market traits.

The Senate Committee on Appropriations wants a entire elimination of electricity subsidies to develop federal authorities income and lower fiscal stress.

The lawmakers made the choice on Monday, February 9, 2026, one day of a public hearing on the 2026 budget proposal at the Nationwide Meeting.

Electricity subsidy elimination

Addressing the session, the committee chairman, Adeola Olamilekan, who represents Ogun West Senatorial District, talked about energy sector reforms must embody ending electricity subsidies, describing them as a heavy burden on public funds.

He added that although the power sector has been unbundled and constitutional modifications now permit states to generate electricity, the federal authorities mild spends trillions of naira each three hundred and sixty five days to augment electricity tariffs.

He talked about:

“We desire to enact the unbundling path of and fully eradicate electricity subsidies. Regardless that states can now generate energy, subsidies mild location a heavy stress on public funds and must be tackled to release more income.”

He argued that Nigeria’s annual income stays insufficient to fund the scale of its budget, adding that persisted subsidy payments extra widen the fiscal gap.

Olamilekan asked:

“If present income can now not strengthen the budget, we desire to rethink our arrive.

“Removing electricity subsidies will pause trillion-naira payments and permit those funds to be redirected into authorities revenues to augment the budget.”

He talked about the 2026 budget specializes in these reforms, calling it a “budget of consolidation,” and stressed out that policies must be well performed and linked to programmes that abet other folks.

For years, the authorities has subsidised electricity to retain costs down, a protection that costs trillions of naira each three hundred and sixty five days.

Critics warn that ending the subsidy may presumably well push bills up, hit households stressful, and raise costs for companies.

Senate defends persisted borrowing

Finally of the hearing, Olamilekan additionally defended the authorities’s thought to borrow around N25.91 trillion to abet fund the 2026 budget.

He talked about borrowing is now not original worldwide, even in developed international locations, and argued that Nigeria can now not rely on month-to-month revenues alone to finance its budget.

He talked about:

“No authorities runs without borrowing. Income projections enact now not approach in trusty away. Authorities must continue to characteristic.”

He added that the authorities plans to rob funds from home banks, capital markets, and international sources, collectively with Eurobonds, to duvet the budget deficit.

Nigerian govt shares merit of gasoline subsidy elimination

Earlier, Legit.ng reported that Wale Edun, finance minister and coordinator of commercial protection, has revealed that President Bola Tinubu’s administration’s decision to scrap gasoline and international exchange subsidies has helped the nation place $20 billion.

He disclosed this whereas talking at an tournament marking the one centesimal day of Esther Walso-Jack’s tenure as Head of the Civil Service of the Federation.

Edun stated that the two petrol and international alternate subsidies had been draining 5% of the nation’s GDP each three hundred and sixty five days.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng