The Federal Government has announced plans to begin phasing out electricity subsidies from 2027 as part of ongoing reforms aimed at improving the financial sustainability of Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed the plan during a media interactive session on Friday, saying the move is designed to address growing liabilities in the electricity industry while ensuring consumers continue to receive necessary support.
According to the minister, the gradual removal of subsidies is part of a broader strategy to build a commercially viable power sector without placing an immediate burden on electricity users.
He clarified that the planned reform does not include an immediate increase in electricity tariffs, assuring Nigerians that the government is not considering a tariff adjustment in the near future.
“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,” Tegbe said.
He added that the Power Consumer Assistance Fund would be introduced to cushion the impact of the reforms on low-income and vulnerable electricity consumers.
“The Power Consumer Assistance Fund will play a critical role in cushioning the impact on vulnerable consumers as we implement these reforms,” the minister stated.
Tegbe noted that details of the implementation timeline and additional consumer protection measures would be unveiled as the reform process advances.
He also described the existing electricity subsidy regime as a significant fiscal burden, stressing that the planned reforms are intended to place the power sector on a more sustainable financial footing while maintaining support for those most affected.
