The Federal Government has announced plans to begin a gradual phase-out of electricity subsidies from 2027 as part of efforts to improve the financial sustainability of Nigeria’s power sector.

Minister of Power Joseph Tegbe made the announcement during a media briefing on Friday, where he addressed the growing debt burden in the electricity industry.

According to the minister, the subsidy removal will be implemented in phases to ensure consumers are not deprived of essential benefits. He also assured Nigerians that there are no immediate plans to increase electricity tariffs, stressing that the transition will be carefully managed to protect electricity users.

The policy marks a major step in the government’s efforts to reduce fiscal pressure, strengthen the power sector’s finances and promote greater efficiency across the electricity value chain.