The Federal Government has announced plans to phase out subsidy payments in Nigeria’s power sector beginning in 2027, marking a major policy shift aimed at addressing the industry’s growing financial challenges.
The Minister of Power, Joseph Tegbe, disclosed the plan during a media interactive session on Friday while addressing the issue of the sector’s mounting debt.
According to the minister, the government will begin the gradual removal of electricity subsidies from next year as part of broader reforms to improve the financial sustainability of the power sector.
Tegbe noted that the continued subsidy regime has contributed significantly to the sector’s debt burden, stressing that the planned phase-out is intended to create a more viable and efficient electricity market.
Further details on the implementation framework and measures to cushion the impact on electricity consumers are expected to be unveiled by the Federal Government.
