The Federal Government has announced its intention to phase out electricity subsidies in 2027 as part of broader reforms designed to restore the financial sustainability of Nigeria’s power sector.
Officials, however, assured citizens that there are no immediate plans to raise electricity tariffs.
Minister of Power, Joseph Tegbe, disclosed this while briefing journalists on Friday.
He explained that the government is working to eliminate what he described as the “so‑called subsidy” in the electricity sector, emphasizing that the reform will be implemented without compromising supply or imposing undue hardship on consumers.
The minister said the government is seeking President Bola Tinubu’s approval to clear the sector’s estimated ₦3.3 trillion legacy debt while putting in place sustainable funding structures to prevent a recurrence.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector,” Tegbe said.
He stressed, however, that ending the subsidy regime does not translate to an immediate increase in electricity tariffs, dismissing reports suggesting that the Federal Government plans to raise tariffs or migrate all electricity consumers to Band A.
“There is no policy by this administration to increase electricity tariffs beyond their current level in the meantime,” he said.
“If anybody is giving you information or telling you we want to increase tariffs, in the meantime, nothing like that. Tell Nigerians, nothing like that.”
According to the minister, the administration’s immediate priority is improving electricity supply, expanding access to power, and ensuring that consumers pay only for the electricity they consume.
“Our priority is not a tariff increase in the meantime. Our priority is service improvement, universal access, and ensuring Nigerians only pay for everything that they actually consume.”
Tegbe said the government is also developing mechanisms to cushion the impact of reforms on low-income households, maintaining that vulnerable electricity consumers will continue to receive protection.
“There are Nigerians that can’t afford to adequately pay for power. These are the vulnerable people. We will protect them.”
He acknowledged concerns over the mounting debt in the electricity sector, describing it as one of the major obstacles to stable power supply and investment.
The minister explained that the planned reforms are intended to halt the continuous accumulation of debt while placing the electricity market on a financially sustainable footing.
Despite the proposed subsidy removal, Tegbe assured Nigerians that the reforms would not come at the expense of reliable electricity supply.
Tegbe said: “We will not deprive Nigerians of anything. We will make sure Nigerian consumers continue to have power and improved power services.”
He noted that electricity supply has improved in recent months, with many communities now receiving up to 16 hours of electricity daily, expressing optimism that ongoing investments and reforms would further reduce outages over the next few years.
Reaffirming the Federal Government’s long-term vision for the sector, the minister said the objective is to build a reliable and sustainable electricity system capable of driving industrial growth and attracting investment.
“Our ambition is very clear: reliable electricity that powers our homes, consistent electricity that powers our industries, sustainable electricity that attracts investment, and inclusive electricity that reaches every Nigerian,” the minister said.
Tegbe added that the success of the reforms would depend on discipline, accountability and collaboration among government agencies, industry players and the media, urging stakeholders to support efforts to reposition Nigeria’s electricity sector for long-term stability.
