The Federal Government has announced plans to begin phasing out electricity subsidy payments from 2027 as part of broader reforms aimed at addressing the financial challenges facing Nigeria’s power sector.

Minister of Power, Joseph Tegbe, disclosed this during a media interactive session on Friday, saying the move is designed to ensure the long-term sustainability of the electricity industry.

Tegbe assured Nigerians that the gradual removal of subsidies would not deny consumers the benefits they currently enjoy. He also stressed that the government has no immediate plans to increase electricity tariffs.

According to the minister, the reforms are intended to build a commercially viable power sector while protecting vulnerable consumers from the impact of the policy changes.

He said the Power Consumer Assistance Fund would serve as a safety net for vulnerable households during the transition, adding that details of the implementation timeline and consumer protection measures would be announced as the reform progresses.

Tegbe noted that electricity subsidies have become a significant fiscal burden on the government, making the planned phase-out necessary to improve the sector’s financial sustainability.
:::writing