The Federal Government has announced plans to begin phasing out electricity subsidies from 2027 as part of wider reforms to address mounting debts in Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed this during a media briefing on Friday, noting that the move is aimed at improving the sector’s financial sustainability.
Tegbe said the subsidy removal would be gradual and assured Nigerians that there are no immediate plans to increase electricity tariffs.
“The phase-out of electricity subsidies will begin from 2027, but there are no short-term plans to raise tariffs,” he said. “Our goal is to build a commercially viable power sector while protecting vulnerable consumers.”
He added that the government would rely on the Power Consumer Assistance Fund to cushion the impact on low-income households.
Nigeria’s electricity subsidy has remained a major fiscal burden, with trillions of naira allocated to support the sector in recent years, contributing to liquidity challenges and debt across the value chain.
The minister said further details on implementation and consumer protection measures would be announced as reforms progress.
