BREAKING: FG to begin electricity subsidy removal in 2027

The Federal Government has announced that it will begin phasing out electricity subsidies from 2027 as part of efforts to address the financial challenges facing Nigeria’s power sector.

Minister of Power, Joseph Tegbe, disclosed the plan on Friday during a media interactive session, saying the policy is designed to make the electricity industry financially sustainable.

According to the minister, the planned subsidy withdrawal is part of broader reforms aimed at reducing the sector’s growing liabilities while maintaining support for vulnerable electricity consumers.

Tegbe, however, assured Nigerians that the government has no immediate plans to increase electricity tariffs, stressing that consumers will continue to enjoy existing benefits 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 minister explained that the Power Consumer Assistance Fund would be used to cushion the impact of the subsidy removal on low-income households and other vulnerable groups.

He added that the government would unveil the implementation timetable and consumer protection measures as the reform process advances.

Tegbe noted that electricity subsidies have continued to place significant pressure on public finances, making reforms necessary to ensure the long-term viability of the country’s power sector.