The Federal Government has announced plans to begin the gradual removal of electricity subsidies from 2027, while assuring Nigerians that the reform will not result in an immediate increase in electricity tariffs.
The disclosure was made by the Minister of Power, Joseph Tegbe, during a media briefing in Abuja on Friday, where he outlined the next phase of the government’s ongoing power sector reforms.
According to Tegbe, the subsidy phase out will be implemented gradually to minimise its impact on consumers and ensure Nigerians continue to benefit from existing support during the transition.
He stressed that the government has no plans to increase electricity tariffs in the near future, despite its decision to progressively reduce subsidy payments from 2027.
The minister explained that the reform is designed to reduce the financial burden on the Federal Government while improving the long term sustainability of Nigeria’s electricity industry.
For years, Nigeria’s power sector has faced a significant funding gap caused by the difference between the actual cost of generating and transmitting electricity and the revenue recovered by electricity distribution companies from consumers.
To bridge that gap, the Federal Government has consistently provided subsidy payments to support the sector.
However, Tegbe said the government now intends to gradually reduce those subsidy obligations beginning in 2027 as part of broader efforts to establish a financially sustainable electricity market.
He maintained that the transition would be carefully managed to protect consumers while strengthening the overall performance and viability of the country’s power sector.
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