The Federal Government has announced plans to begin phasing out electricity subsidies from 2027 as part of reforms aimed at restoring the financial health of Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed the plan during a media briefing on Friday, saying the move is intended to reduce the growing financial burden created by subsidy payments and mounting debts within the electricity industry.
According to Tegbe, the subsidy removal forms part of a broader strategy to place the power sector on a sustainable financial footing and address long-standing liabilities affecting operators.
Despite the planned reforms, the minister assured Nigerians that there are no immediate plans to increase electricity tariffs. He stressed that consumers should not expect a short-term tariff hike, noting that the government intends to maintain current electricity pricing while implementing the changes.
He explained that the reforms are designed to improve the sector’s long-term viability without placing additional financial pressure on electricity consumers in the immediate future.
The announcement comes as concerns continue to grow over the financial sustainability of Nigeria’s electricity market, where subsidy obligations and accumulated debts have strained both operators and government finances.
Meanwhile, former Chief of Army Staff, Tukur Yusuf Buratai, recently expressed concern over the country’s worsening economic situation. Speaking at the 60th birthday celebration of former Rivers State Governor Rotimi Amaechi, Buratai described the rise in poverty under President Bola Tinubu’s administration as “massive and sudden.”
He argued that while poverty had increased gradually over the years, the current level of economic hardship has accelerated sharply, warning that the rapid deterioration carries significant social and economic consequences.
