FG Targets End To Power Subsidy In 2027, Rules Out Immediate Tariff Hike
The Nigerian government plans to phase out electricity subsidies by 2027 to improve sector sustainability. Officials clarified that there are no immediate plans to increase electricity tariffs for consumers.
Why it matters
Energy policy reforms are critical for Nigeria's economic stability and directly impact the cost of living for millions of citizens.
The Federal Government has announced plans to phase out electricity subsidies next year as part of broader reforms aimed at restoring the financial sustainability of Nigeria’s power sector, while assuring Nigerians that there is no immediate plan to increase electricity tariffs.
Minister of Power Joseph Tegbe disclosed this while addressing journalists on Friday, saying the government is working to eliminate what he described as the “so-called subsidy” in the electricity sector without compromising electricity supply or imposing additional hardship on consumers.
The minister said the government is seeking President Bola Tinubu’s approval to clear the sector’s estimated ₦3.3 trillion legacy debt while putting in place sustainable funding structures to prevent a recurrence.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector,” Tegbe said.
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