The Federal Government has announced plans to gradually phase out electricity subsidies beginning in 2027, while assuring Nigerians that the move will not lead to an immediate increase in power tariffs.
Speaking during a media briefing in Abuja on Friday, Minister of Power Joseph Tegbe said the government intends to steadily reduce subsidy payments in the power sector as part of broader reforms. He, however, stressed that consumers would not be stripped of the benefits currently enjoyed under the subsidy scheme.
Tegbe also clarified that there are no plans to raise electricity tariffs in the near future, despite the proposed subsidy phase-out.
For years, Nigeria’s electricity sector has struggled with a funding gap caused by the difference between the actual cost of generating and transmitting power and the amount distribution companies recover from customers.
The Federal Government has consistently bridged this gap through subsidy payments, but now plans to gradually ease that financial burden starting in 2027.FG To Begin Phasing Out Electricity Subsidies From 2027 — Minister of Power, Joseph Tegbe.
The Federal Government has announced plans to gradually phase out electricity subsidies beginning in 2027, while assuring Nigerians that the move will not lead to an immediate increase in power tariffs.
Speaking during a media briefing in Abuja on Friday, Minister of Power Joseph Tegbe said the government intends to steadily reduce subsidy payments in the power sector as part of broader reforms. He, however, stressed that consumers would not be stripped of the benefits currently enjoyed under the subsidy scheme.
Tegbe also clarified that there are no plans to raise electricity tariffs in the near future, despite the proposed subsidy phase-out.
For years, Nigeria’s electricity sector has struggled with a funding gap caused by the difference between the actual cost of generating and transmitting power and the amount distribution companies recover from customers.
The Federal Government has consistently bridged this gap through subsidy payments, but now plans to gradually ease that financial burden starting in 2027.