The Federal Government has announced plans to phase out electricity subsidy payments from 2027 as part of ongoing reforms aimed at reducing the mounting financial burden in Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed the development during a media interactive session on Friday, where he addressed concerns over the increasing debt profile of the electricity industry.
According to the minister, the gradual withdrawal of electricity subsidies is designed to improve the long-term sustainability of the power sector and resolve persistent financial challenges affecting operators.
Tegbe, however, assured Nigerians that the planned policy would not deny citizens the benefits they currently enjoy under the subsidy arrangement.
He also dismissed fears of an imminent increase in electricity tariffs, stating that the Federal Government has no immediate plans to raise power tariffs despite the proposed subsidy phase-out.
The minister noted that the reform is part of a broader strategy to strengthen the electricity sector while ensuring efficient service delivery and financial stability.
Further details are expected.