The Federal Government has announced plans to introduce a targeted electricity subsidy programme aimed at cushioning the impact of rising energy costs on vulnerable households while ensuring the long-term sustainability of the nation’s power sector.

Under the proposed framework, the subsidy will be focused on low-income consumers, ensuring that support reaches only those who genuinely need it, rather than being applied across all categories of electricity users.

Officials explained that the move aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda to balance social welfare with fiscal responsibility. The policy is designed to maintain affordable electricity access for ordinary Nigerians while freeing resources to strengthen infrastructure, improve generation, and attract investment into the power industry.

The Federal Government is also engaging stakeholders, including power distribution companies, regulators, and consumer protection agencies, to ensure a transparent and data-driven implementation process.

When fully implemented, the initiative is expected to reduce the financial burden on the most vulnerable citizens, boost public confidence in ongoing reforms, and enhance overall power sector performance.