LFR 2026: The Government cites budgetary tensions that could affect electricity supply

As part of the examination of the amended finance law (LFR) 2026, the Government sent the Finance Commission additional responses to the concerns of deputies. The objective is to shed light on the motivations for budgetary decisions.

In its responses to the concerns of the Finance and Budgetary Control Committee on the 2026 amended finance bill (LFR), the Ministry of the Economy, Finance and Planning warns of a risk of fuel shortages and repetitive load shedding.

“The Special Fund to Support the Energy Sector (FSE), with an initial envelope of 250 billion FCFA in the initial finance law (LFI) 2026, has already exhausted all of its credits. “The credits opened under the 2026 LFI have been fully consumed,” underlines the document.

The same source underlines, “the sums due for commercial losses and fuel purchases from Senelec are around 320 billion FCFA, not counting the files still being examined by the Energy Sector Regulatory Commission (CRSE)”.

The document particularly highlights the consequences that could result from non-payment of commitments. “The non-payment of subsidies compromises the continuity of supply of the national market with petroleum products and fuels intended for the production of electricity,” we read in the responses addressed to parliamentarians.

“In the absence of urgent budgetary measures allowing the FSE to resume its interventions and gradually clear debts, the risk of disruption of hydrocarbon supplies and major disruptions to the electricity system, particularly in the form of load shedding, would increase,” warns the Ministry of the Economy, Finance and Planning.

540.3 billion additional FCFA

To prevent this scenario, the Government is banking on the adoption of the LFR 2026, which provides for the opening of 540.3 billion FCFA in additional credits for the benefit of the FSE. This envelope should allow the Fund to resume its interventions and gradually meet the accumulated commitments, we read in the document.

In detail, the financing needs concern in particular compensation due to oil operators as well as expenses linked to electricity production. The document also reports “an overall envelope of support for the energy sector of 790.3 billion FCFA, including the 250 billion recorded in the LFI, 468.3 billion in additional credits planned under the LFR and 72 billion under the hydrocarbon component of the CERP”.

O.BA