The Federal Government has announced plans to begin phasing out electricity subsidy payments from 2027 as part of efforts to address mounting liabilities in the power sector.
The Minister of Power, Joseph Tegbe, disclosed this at a media interactive session on Friday.
Tegbe said the Federal Government would commence the phased withdrawal of electricity subsidies in 2027, assuring Nigerians that the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime.
According to him, the proposed subsidy removal forms part of broader reforms aimed at ensuring the long-term sustainability of the electricity sector while addressing the financial challenges confronting the industry.
The minister 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 added.
He noted that the implementation timeline and consumer protection measures would be unveiled as the reform process progresses, emphasising that electricity subsidies have remained a major fiscal burden for the country.
