Equatorial Guinea government to cut subsidies for public entities with debts
Prime Minister warns that entities failing to pay SEGESA will face direct subsidy deductions starting January 1, 2027.
The Equatorial Guinean government will directly deduct subsidies from public entities that fail to pay their debts to SEGESA, the national electricity company. This measure follows a meeting where the accumulated debt was discussed, with some entities having settled their accounts while others remain in arrears. The government has given parties a week and a half to reach specific payment agreements.
Prime Minister Manuel Osa Nsue Nsua warned that starting January 1, 2027, payments will not be made to entities that have not regularized their accounting, tax obligations, and legal documentation. The Ministry of Finance reported that only a minority of entities are paying their taxes regularly. The government also reviewed social obligations, asking INSESO to list entities with unpaid employee contributions.
The government is also pushing for the restructuring of public entities to ensure fiscal sanitation and sustainability. A third meeting will be held to evaluate the results of the payment agreements and make final decisions on unresolved cases. SEGESA has also been asked to consider compensation mechanisms for electricity supply interruptions.
Why it mattersPublic entities in Equatorial Guinea face direct subsidy cuts and payment freezes if they do not settle debts and regularize their financial and tax obligations.