The Federal Government has announced plans to begin phasing out electricity subsidies from 2027 as part of sweeping reforms aimed at addressing the growing financial burden in Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed the plan during a media interactive session on Friday, explaining that the move is designed to make the electricity industry commercially sustainable without immediately increasing tariffs.
Tegbe reassured Nigerians that the planned withdrawal of subsidies would not strip consumers of existing benefits, stressing that there are currently no plans to raise electricity tariffs.
According to him, the subsidy phase-out is part of broader reforms to reduce mounting liabilities while improving the long-term stability of the power sector.
“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,” the minister said.
He added that the Power Consumer Assistance Fund would be introduced to cushion the impact of the reforms on vulnerable Nigerians.
Tegbe noted that details of the implementation timeline and consumer protection measures would be made public as the reform progresses, emphasizing that the electricity subsidy has become a major fiscal burden on the Federal Government.
Discover more from NATIONAL BEAM
Subscribe to get the latest posts sent to your email.
