The Federal Government has announced plans to phase out subsidy payments in the power sector starting from 2027.
The Minister of Power, Joseph Tegbe, made the disclosure during a media interactive session on Friday while addressing issues around the power sector debt.
Tegbe stated that the subsidy will be gradually removed but assured Nigerians that they will not be deprived of any benefits under the new arrangement.
The announcement is part of ongoing reforms in the power sector aimed at achieving long-term sustainability, reducing fiscal burden on the government, and encouraging greater efficiency and private sector investment.
The power sector has been one of the most subsidised areas in Nigeria for years, with the government covering significant shortfalls between generation costs and what consumers pay.
The gradual removal of the subsidy is expected to lead to more cost-reflective tariffs, which many stakeholders believe is necessary for the sector’s viability, even as it may initially cause concerns among consumers.
The Minister’s assurance that citizens will not lose benefits suggests that the government may introduce targeted support measures or other interventions to cushion the impact on vulnerable consumers.
This development aligns with broader economic reforms aimed at reducing subsidies across various sectors to free up resources for critical infrastructure and social investment.
As the 2027 timeline approaches, Nigerians will be watching closely to see how the power sector subsidy removal is implemented and what measures are put in place to protect consumers.
