BREAKING: FG to End Power Sector Subsidy from 2027
BREAKING: FG to End Power Sector Subsidy from 2027
The Federal Government has announced plans to phase out subsidy payments in Nigeria’s power sector beginning in 2027.
Minister of Power Joseph Tegbe disclosed this on Friday during a media interactive session, stating that the move is part of broader reforms aimed at making the electricity industry financially sustainable.
According to the minister, the government can no longer sustain the huge subsidy burden, and efforts are underway to establish a cost-reflective electricity market while protecting vulnerable consumers through targeted interventions.
The planned removal of the subsidy is expected to have significant implications for electricity tariffs, power distribution companies, and consumers. The government says further details on the transition and measures to cushion the impact will be communicated as implementation approaches.
The announcement marks another major step in the ongoing reform of Nigeria’s power sector, which has long struggled with inadequate funding, mounting debts, and unreliable electricity supply.
