The Federal Government has confirmed that it will commence a gradual withdrawal of electricity subsidies from 2027 as part of ongoing reforms to restore financial stability to Nigeria’s power sector and reduce the industry’s growing debt burden.
Minister of Power, Joseph Tegbe, made the announcement on Friday during a media briefing, where he outlined the government’s plans for the electricity sector and addressed concerns over its mounting financial liabilities.
According to the minister, the subsidy phase-out will be implemented in stages to ensure consumers are not abruptly affected or deprived of the benefits currently provided through government intervention.
Tegbe emphasized that the reform is designed to create a more financially sustainable electricity market without placing undue hardship on Nigerians.
He also dismissed reports suggesting that the government is preparing to increase electricity tariffs in the immediate future, maintaining that there is no plan for an imminent upward review of tariffs.
The minister explained that the gradual removal of subsidies is a key component of the government’s broader strategy to strengthen the power sector, reduce fiscal pressure, and create a more viable electricity industry while cushioning consumers against sudden price shocks.
