RismadarVoice Reporters, July 31, 2026
The Federal Government of Nigeria has announced plans to begin phasing out electricity subsidies from 2027 as part of ongoing reforms aimed at addressing the growing financial burden in Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed this on Friday during a media interactive session, saying the move is designed to ensure the long-term sustainability of the electricity industry while reducing mounting government liabilities.
Tegbe assured Nigerians that the planned subsidy withdrawal would not deny consumers the benefits currently enjoyed under the existing arrangement, stressing that measures would be put in place to protect vulnerable households.
According to him, there are no immediate plans to increase electricity tariffs despite the proposed subsidy phase-out.
“The phase-out of electricity subsidies will begin from 2027. However, there are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers,” the minister said.
He explained that the Power Consumer Assistance Fund would serve as a key intervention mechanism to cushion the impact of the reforms on low-income electricity consumers.
“The Power Consumer Assistance Fund will play a critical role in cushioning the impact on vulnerable consumers as we implement these reforms,” Tegbe added.
The minister noted that details of the implementation timeline and consumer protection measures would be unveiled as the reform process progresses.
The planned subsidy removal forms part of the Federal Government’s broader efforts to reform the power sector, improve efficiency and reduce the fiscal pressure created by electricity subsidies.
