The Federal Government has announced plans to phase out electricity subsidies from 2027 as part of ongoing reforms aimed at restoring financial sustainability to Nigeria’s power sector, while assuring consumers that there are no immediate plans to increase electricity tariffs.

Minister of Power, Joseph Tegbe, disclosed the development during a media interactive session on Friday, where he addressed concerns over the mounting debt burden and financial challenges facing the electricity industry.

According to the minister, the gradual withdrawal of subsidy payments forms part of a broader strategy to tackle the sector’s growing liabilities, improve operational efficiency and attract sustainable investment into the power value chain.

Tegbe, however, assured Nigerians that the planned subsidy phase-out would not deprive citizens of the benefits currently enjoyed under the existing framework.

He explained that the government is committed to implementing reforms that balance consumer protection with the need to create a financially viable electricity market capable of delivering reliable power supply.

The minister also dismissed speculation about an imminent increase in electricity tariffs, stressing that the Federal Government is not considering any immediate tariff adjustment.

“There are no plans to increase electricity tariffs at this time,” he said, reassuring consumers that the focus remains on addressing structural challenges within the sector rather than imposing additional financial burdens on electricity users.

The planned subsidy withdrawal is expected to form a key component of the government’s long-term strategy to reduce fiscal pressure, improve market efficiency and strengthen the financial health of Nigeria’s power sector beginning from 2027.