FG to Phase Out Power Sector Subsidy From 2027

The Federal Government has announced plans to gradually phase out subsidy payments in Nigeria’s power sector beginning in 2027.

Minister of Power, Joseph Tegbe, disclosed this during a media briefing in Abuja on Friday.

According to the minister, the subsidy removal will be implemented in phases to ensure that Nigerians are not deprived of the benefits of reliable electricity supply.

He, however, assured consumers that there are no immediate plans to increase electricity tariffs.

Nigeria’s electricity sector has for years operated with a funding gap between the actual cost of generating and transmitting power and the revenue collected by electricity distribution companies. The Federal Government has been bridging this gap through subsidy payments.

The planned phase out is expected to form part of broader reforms aimed at improving the financial sustainability and efficiency of the country’s power sector while protecting consumers during the transition.