FG TO END ELECTRICITY SUBSIDY IN 2027, RULES OUT IMMEDIATE TARIFF HIKE
Read Time:2 Minute, 49 Second
By ‘Sefiu Ajape
The Federal Government has announced plans to phase out electricity subsidies next year as part of ongoing reforms aimed at restoring the financial sustainability of Nigeria’s power sector, while insisting there is no immediate plan to increase electricity tariffs.
The Minister of Power, Joseph Tegbe, disclosed this on Friday while addressing journalists, saying the government intends to eliminate what he described as the “so-called subsidy” in the electricity sector without disrupting electricity supply or placing additional financial burden on consumers.
Tegbe said the government is seeking President Bola Tinubu’s approval to clear the sector’s estimated ₦3.3 trillion legacy debt and establish sustainable funding mechanisms to prevent future debt accumulation.
“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, however, clarified that ending the subsidy regime does not mean there will be an immediate increase in electricity tariffs, dismissing reports 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 focus is to improve electricity supply, expand access to power, and ensure 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 putting measures in place to cushion the impact of the reforms on low-income households, assuring that vulnerable electricity consumers would 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.”
The minister acknowledged the mounting debt in the power sector, describing it as one of the major impediments to stable electricity supply and increased investment.
He explained that the proposed reforms are designed to stop the continuous accumulation of debt while placing the electricity market on a financially sustainable path.
Despite the planned removal of electricity subsidies, Tegbe assured Nigerians that the reforms would not come at the expense of reliable power 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 confidence that ongoing investments and reforms would further reduce outages in the coming years.
Reaffirming the Federal Government’s long-term vision for the power sector, the minister said the goal 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.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0