FG Targets End of Electricity Subsidy in 2027, Rules Out Immediate Tariff Hike

The Federal Government plans to phase out electricity subsidies from 2027 as part of efforts to address the power sector’s mounting debts and establish a more sustainable funding structure.

Minister of Power Joseph Tegbe said the government would gradually withdraw the subsidy while working to clear the sector’s legacy debts and prevent new liabilities from accumulating. He assured electricity consumers that the reform would not deprive them of power or existing benefits and said there are no immediate plans to increase electricity tariffs.

Tegbe said the government’s priority is to improve electricity supply, expand access and ensure consumers pay only for the electricity they actually receive, while developing measures to protect vulnerable households.

He recently cited improvements in supply in some areas that previously experienced prolonged outages, saying some communities were now receiving up to 18 hours of electricity daily. He made the remarks in Abuja while commissioning a 3-megawatt solar hybrid power project at Yakubu Gowon University, formerly the University of Abuja.

The minister also recalled his Senate screening pledge that Nigerians would begin to see improvements in electricity supply within three to six months. He recounted how some consumers jokingly asked him to “slow down” because their freezers were running continuously as a result of improved supply, to which he replied that “that is what a freezer is meant to do.”

Tegbe said the broader reforms are intended to combine improved electricity services with the settlement of legacy debts and a funding structure that can prevent the sector from repeatedly accumulating new liabilities.