By Aliyu Oyewole
The Federal Government has announced plans to gradually phase out electricity subsidy payments beginning in 2027, as part of efforts to address mounting financial obligations in Nigeria’s power sector.
The Minister of Power, Joseph Tegbe, disclosed this during a media interactive session on Friday while addressing concerns over the sector’s growing debt profile.
Tegbe explained that the subsidy removal would be implemented in phases to ease the transition, stressing that the government remains committed to protecting Nigerians from undue hardship.
According to him, although subsidy payments will eventually be discontinued, consumers will not be deprived of the benefits currently enjoyed under the government’s intervention in the electricity sector.
The minister also dismissed reports of an imminent increase in electricity tariffs, assuring Nigerians that there are no plans to raise power tariffs in the immediate term.
He said the phased withdrawal of subsidies forms part of broader reforms aimed at ensuring the long-term financial sustainability of the power sector while maintaining reliable electricity supply.
The government has in recent years grappled with rising subsidy obligations and debts owed to electricity generation and distribution companies, prompting renewed efforts to restructure the sector and improve its financial viability.
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