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FG to spend $600m annually on electricity subsidy
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The Federal Government has announced plans to introduce an annual electricity subsidy of $600m for all customers from 2025 as part of efforts to reform the power sector.
The subsidy, expected to last until 2027, aims to bridge the gap between cost-reflective tariffs and regulated electricity rates, while the government works towards eliminating the metering deficit and enhancing the financial sustainability of power distribution companies.
According to Nigeria’s Energy Compact document obtained by Sunday PUNCH, the initiative is part of the National Energy Compact and aligns with Nigeria’s broader electrification and clean energy transition plans.
Nigeria, alongside Côte d’Ivoire, Zambia, and nine other African countries, presented its energy compact at a two-day summit in Tanzania, with a focused on innovative energy solutions.
However, the policy is a temporary measure designed to ensure affordability while the government progressively moves towards full cost-reflective tariffs.
The document noted that the subsidy might take different forms, including a flat monthly subsidy per electricity consumer or a subsidy on the first 50 kilowatt-hours consumed each month.
This approach intends to reduce the regressivity of previous subsidies, where a significant portion benefited wealthier households.
By 2027, the government plans to introduce a social tariff to protect low-income and vulnerable customers once the broader cost-reflective framework is fully implemented.
The document noted the Federal Government’s trajectory to full cost-reflectivity included a “$600m per year subsidy in 2025 to 2027 (while metering gap is being closed), and then fully CRT except for social tariff for vulnerable customers.”
It added, “In order to decrease the regressivity of electricity subsidies, move towards a full cost reflective tariff system which includes a limited and uniform subsidy for all customers in 2025 while the metering gap is being closed. This scheme can take the form of a uniform monthly subsidy per customer, or the first 50 kWh per month being subsidised.”
A key focus of the reform is closing Nigeria’s metering gap, which currently stands at approximately seven million unmetered electricity end-users.
The government outlined a plan to install 1.5 million smart meters in 2025, four million in 2026, and 1.5 million in 2027.
The closure of the metering gap is expected to minimise losses in the sector, improve revenue collection efficiency, and ensure that tariffs are aligned with actual consumption, thereby reducing the need for future subsidies.
The electricity sector has struggled with financial sustainability due to high technical and commercial losses, low tariff recovery rates, and liquidity constraints.
Despite efforts under the Power Sector Recovery Programme, tariff shortfalls reached N650bn in 2023 and are expected to rise further in 2024, potentially exceeding N2.2tn.
The subsidy scheme would provide temporary relief while ensuring that distribution companies meet their financial obligations to power generation companies and the Transmission Company of Nigeria.
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APC sets May 25 deadline for 2027 primary elections results submission
The All Progressives Congress has ordered all Primary Election Committees to submit reports and result sheets from its 2027 primaries by Monday, May 25, 2026.
The directive was announced in a statement issued May 24 by APC National Publicity Secretary Felix Morka. It covers governorship, senatorial, House of Representatives, and state assembly primaries.
The party said submissions for legislative bye-election reports will open on May 30, 2026.
National Organising Secretary Sulaiman Muhammad Argungu signed the notice and urged committees to ensure documents are submitted promptly and accurately.
APC said sticking to the deadlines is critical for transparency and credibility in its internal electoral process ahead of the 2027 general elections.
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2027: Ogbeide-Ihama hails Tinubu’s reemergence as APC presidential flag bearer
Edo South Senatorial District All Progressives Congress APC Senate flag bearer, Hon Omoregie Ogbeide-Ihama has hailed the reemergence of Bola Tinubu as APC presidential candidate in the 2027 general elections.
Ogbeide-Ihama in a congratulatory message he personally signed hailed President TInubu describing him as the iroko tree that provides shades for all.
Recall that Tinubu was declared winner of the keenly contested APC Presidential Primary, held at the Eagle Square in Abuja, said is truly the arrowhead of politics in Nigeria, adding that as one of the movers and shakers of APC from day one his victory did not come as a surprise.
He stressed that the emergence of Senator Tinubu was a result of dint of hard work, and that the votes that gave him victory was a clear manifestation of his general acceptance.
Ogbeide-Ihama noted that Tinubu is truly a political caterpillar that pilots his affairs without rancour with his massive shoulders warehousing all and sundry to the admiration of his political adversaries.
” I hail you my Excellency as you have proven it again that definitely you can take Nigeria to the next level.
News
Just in: Oil Falls With Brent Below $100 Per Barrel On Hopes Of US-Iran Hormuz Deal
The price of North Sea Brent crude and West Texas Intermediate slipped close to five percent to $99.41 and $92.49 a barrel, respectively.
The United States and Iran appear closer than ever to a deal that would end the war that has ravaged the Middle East since late February, sending energy prices soaring and stoking global inflation.
But sticking points in their negotiations have tempered hopes of a swift resolution to restore the transit of oil and gas through the Strait of Hormuz.
US President Donald Trump said on Sunday he had informed US negotiators “not to rush into a deal”.
“The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side,” a post to Trump’s official Truth Social account said.
Iran’s Tasnim news agency said that, based on their information, key clauses of a possible agreement remained unresolved.
One of the main sticking points has been whether Tehran is willing to hand over its stockpile of highly enriched uranium.
The release of Iran’s frozen assets held under longstanding US sanctions and whether Lebanon, repeatedly targeted by Israeli strikes, will be included in any peace deal are also key issues.
Markets across Asia climbed in early trade on hopes that Washington and Tehran will be able to overcome these hurdles.
Tokyo soared more than three percent in early trade on Monday, while Hong Kong and Seoul were closed for public holidays.
Shanghai inched upwards, with Taipei, Manila, Bangkok, Jakarta, Singapore, Sydney, and Wellington also climbing.
Kuala Lumpur was down 0.1 percent.
“The weekend news flow has once again focused on the prospects for a negotiated deal between the US and Iran,” said Chris Weston, head of research at Pepperstone.
“According to reports from Donald Trump, a memorandum of understanding has been ‘largely negotiated’, with details to be announced at some stage soon, although there appears to be limited urgency,” Weston said.
Investors will also be keeping an eye on how the US Federal Reserve and its new chief, Kevin Warsh, react to Personal Consumption Expenditures (PCE) data this week, as well as European inflation metrics.
“The inflation story remains central to the entire setup,” said SPI Asset Management analyst Stephen Innes.
“Investors will receive another critical read on Thursday with the release of the Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation gauge.
“After several hotter-than-expected consumer and producer inflation reports earlier this month, markets are increasingly concerned that elevated oil prices and supply disruptions tied to the Middle East conflict are beginning to seep into the broader inflation pipeline.”
The conflict erupted after the United States and Israel attacked Iran on February 28, and the Islamic Republic responded with missile and drone attacks across the region.
The United States and Iran have observed a ceasefire since April 8 while mediators push for a negotiated settlement, although Tehran has imposed controls on Gulf shipping and Washington has blockaded Iran’s ports.
Currency dealers monitor exchange rates as an electronic screen shows the prices of WTI (L), Brent crude (C), and Dubai crude (R) in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on March 13, 2026. (Photo by Jung Yeon-je / AFP)
Key Figures At Around 0215 GMT
Brent North Sea Crude: DOWN 3.99 per cent at $99.41 a barrel
West Texas Intermediate: DOWN 4.25 per cent at $92.49 a barrel
Tokyo – Nikkei 225: UP 3.2 per cent at 65,358.97
Shanghai – Composite: UP 0.3 per cent at 4123.89
Hong Kong – Hang Seng Index: UP 0.9 percent at 25,606.03 (close)
Euro/dollar: UP at 1.1640 from 1.1608 on Friday
Pound/dollar: UP at $1.3480 from $1.3441
Dollar/yen: DOWN at 158.86 from 159.13 yen
Euro/pound: DOWN at 86.35 from 86.36 pence
New York – DOW: UP 0.6 per cent at 50,579,70 (close)
New York – S&P 500: UP 0.4 per cent at 7,473.47 (close)
New York – Nasdaq: UP 0.2 per cent at 26,343.97 (close)
London – FTSE 100: UP 0.2 per cent at 10,466.26 (close)
Paris – CAC 40: UP 0.4 per cent at 8,115.75 (close)
Frankfurt – DAX 30: UP 1.2 per cent at 24,888.56 (close)
AFP
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