Power Minister says government will phase out electricity subsidy while protecting vulnerable consumers and improving power supply.
The Federal Government has announced plans to phase out electricity subsidies in 2027 as part of reforms aimed at restoring the financial sustainability of Nigeria’s power sector, while assuring Nigerians that there is no immediate plan to increase electricity tariffs.
Minister of Power, Joseph Tegbe, disclosed this while briefing journalists on Friday, saying the administration is committed to ending what he described as the “so-called subsidy” without disrupting electricity supply or placing additional financial burdens on consumers.
Tegbe revealed that the government is seeking President Bola Tinubu’s approval to clear the sector’s estimated ₦3.3 trillion legacy debt and establish sustainable funding mechanisms to prevent future debt accumulation.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector,” the minister said.
He dismissed reports of an imminent tariff increase, insisting that the government’s immediate focus is improving electricity supply, expanding access to power and ensuring consumers pay only for the electricity they use.
“Our priority is not a tariff increase in the meantime. Our priority is service improvement, universal access and ensuring Nigerians only pay for what they actually consume,” Tegbe stated.
The minister added that the government is designing measures to shield low-income households from the impact of the reforms, stressing that vulnerable electricity consumers would continue to receive support.
He identified the sector’s growing debt burden as a major obstacle to investment and stable power supply, noting that the planned reforms are intended to halt further debt accumulation while placing the electricity market on a sustainable financial footing.
Tegbe also said electricity supply has improved in recent months, with many communities now enjoying up to 16 hours of power daily, expressing confidence that ongoing investments and reforms would further reduce outages.
He reaffirmed the Federal Government’s commitment to building a reliable and sustainable electricity system capable of supporting industrial growth, attracting investment and delivering improved power supply to Nigerians.