The Federal Government has announced plans to phase out electricity subsidy payments from 2027 as part of efforts to address mounting liabilities in the power sector.
Minister of Power, Joseph Tegbe, disclosed the plan during a media interactive session on Friday while addressing concerns over the sector’s growing debt burden.
Tegbe said the government intends to eliminate subsidies beginning in 2027 but assured Nigerians that the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime.
He explained that the planned removal forms part of broader reforms aimed at ensuring the long-term sustainability of the electricity sector while tackling the financial challenges confronting the industry.
Despite the planned subsidy withdrawal, the minister stressed that there are no immediate plans to increase electricity tariffs, reassuring consumers that the government is not considering a tariff hike in the short term.