The Federal Government has announced plans to begin
phasing out electricity subsidies from 2027 as part of efforts to improve the
sustainability of Nigeria's power sector.
Minister of Power, Joseph Tegbe, disclosed the plan
during a media briefing with journalists in Abuja on Friday, July 31.
According to the minister, the subsidy removal will be
implemented gradually to minimize its impact on consumers, assuring Nigerians
that they will continue to enjoy the necessary benefits throughout the
transition.
Tegbe also dismissed speculation about an imminent
increase in electricity tariffs, stating that the government has no immediate
plans to raise power prices.
Nigeria's electricity sector has for years struggled
with a significant funding gap, as the revenue collected by electricity
distribution companies falls short of the actual cost of generating and
transmitting power. To bridge this deficit, the Federal Government has
consistently provided subsidies to support the industry.
The planned phase-out is expected to form part of
broader reforms aimed at making the country's power sector more financially
viable while maintaining reliable electricity services for consumers.
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