The Federal Government has announced plans to end electricity subsidy payments from 2027 as part of efforts to tackle mounting liabilities in the power sector.
This was disclosed by the Minister of Power, Joseph Tegbe, at a media interactive session on Friday.
The minister stated that the Federal Government would phase out subsidies beginning in 2027, assuring Nigerians that the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime.
According to him, the proposal removal forms part of broader reforms aimed at ensuring the long-term sustainability of the electricity sector while tackling the financial challenges confronting the industry.
Tegbe explained that despite the planned subsidy withdrawal, there are no immediate plans to increase electricity tariffs, reassuring consumers that the government is not considering a tariff hike in the short term.
“The phase-out of electricity subsidies will begin from 2027. However, there are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers,” he said.
“The Power Consumer Assistance Fund will play a critical role in cushioning the impact on vulnerable consumers as we implement these reforms,” the minister stated.
He pointed out that the implementation timeline and consumer protection measures would be unveiled as the reform process progresses, emphasizing that Nigeria’s electricity subsidy has remained a major fiscal burden.
BREAKING: Nigerian Govt to stop electricity subsidy payments from 2027