The Federal Government has said there will be no immediate increase in electricity tariffs, even as it announced plans to phase out power sector subsidies from 2027.
Minister of Power, Joseph Tegbe, disclosed this during a media interactive session on Friday while addressing the growing debt burden in the electricity sector.
According to him, the government has been mandated by President Bola Ahmed Tinubu to clear the sector’s legacy debts and establish a sustainable financing structure that will eliminate the need for continued subsidy payments.
Tegbe said the subsidy would be gradually phased out beginning next year, assuring Nigerians that the move would not affect access to electricity or the quality of power supply.
“We have the mandate of Mr. President to clear the legacy debt and come up with sustainable structures to make sure this doesn’t pile up anymore,” he said.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector. Mr. President will not deprive Nigerians of anything. We’ll make sure Nigerian consumers continue to have power and improve power services.”
The proposed policy is in line with the recommendation of the International Monetary Fund (IMF), which has consistently urged Nigeria to phase out electricity subsidies as part of broader fiscal reforms.
