Breaking: Tinubu's Govt Announces When Electricity Subsidies Will Be Phased Out
- Federal government announced a plan to gradually remove subsidies in the power sector starting from 2027
- Power Minister Joseph Tegbe made the disclosure during a media session on Friday while addressing the power sector debt crisis
- Tegbe assured Nigerians that the subsidy phase-out will not strip them of benefits and that tariff hikes are not being considered now
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FCT, Abuja - Nigeria's federal government has said it will begin phasing out subsidy payments in the power sector from 2027, marking a significant shift in how the country manages electricity funding.
Joseph Tegbe, the minister of power, made the announcement on Friday during a media interactive session, where he addressed ongoing concerns about the sector's mounting debt profile.
Source: UGC
Subsidies to go, but gradually
Tegbe said the removal would not happen overnight. The government intends to wind down the payments in stages, and he assured Nigerians that the process would not leave ordinary citizens worse off, The Cable reported.
"The subsidy will be gradually removed, but Nigerians will not be deprived of any benefits," he said.
The minister did not provide a detailed timeline for each phase of the removal, but confirmed that 2027 is the target year for the policy to take effect.
No immediate tariff increases planned
Tegbe also pushed back against fears that Nigerians would soon face higher electricity bills, saying there are no plans in the immediate term to raise tariffs. The clarification came amid wider concerns about the cost of living and the economic burden already facing households across the country, Vanguard reported.
Nigeria's power sector has long been weighed down by a gap between what distribution companies collect from consumers and what it actually costs to generate and transmit electricity, a shortfall the government has historically covered through subsidies.
The plan to phase these out reflects a broader fiscal effort to reduce the government's financial exposure in the sector.
FG begins construction of 48 interconnected miini-grids
Previously, Legit.ng reported that the Rural Electrification Agency (REA) commenced construction of 48 interconnected mini-grid projects in 19 states, a move aimed at expanding electricity access to underserved communities through Nigeria's updated off-grid power framework.
The projects are being developed under the Nigerian Electricity Regulatory Commission's (NERC) new interconnected mini-grid (IMG) regulations, which allow significantly larger renewable energy systems than previously permitted.
Source: Legit.ng
