The Federal Government has announced plans to end subsidy payments in Nigeria’s power sector from 2027 as part of efforts to establish a more sustainable structure for the electricity industry.
Minister of Power, Joseph Tegbe, disclosed this during a recent media interactive session, where he addressed the debt burden facing the power sector and the government’s plans to prevent the accumulation of further liabilities.
Tegbe said the government would gradually phase out the subsidy while working to clear legacy debts in the sector.
“We have the mandate of Mr. president to clear the legacy debt and come up with sustainale structures to make sure this doesn’t pile up any more,” Tegbe said.
The minister said the planned removal of the subsidy would not mean electricity consumers would lose existing benefits, assuring Nigerians that the government would continue working to improve power supply.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector. Mr. presiden, we will not deprive Nigeria of anything. We’ll make sure Nigerian consumers continue to have power and improve power services.”
Tegbe also said there was no immediate plan to increase electricity tariffs as the government moves towards ending the subsidy.
The minister has recently highlighted improvements in electricity supply, saying some areas that previously experienced prolonged outages were now receiving up to 18 hours of power daily.
He made the disclosure on Wednesday in Abuja while speaking at the commissioning of a 3-megawatt solar hybrid power project at Yakubu Gowon University, formerly known as the University of Abuja.
According to Tegbe, the improvement in supply has generated reactions from consumers, including some who have asked him to “slow down” because their freezers were now running continuously.
“Places that didn’t have light at all for three months are now having 18 hours light. Some areas called me to say, look, I should slow down, that everything in their freezer is freezing.
“That is what freezer is meant to do. Let it freeze the food that needs to be frozen,” Tegbe said.
Tegbe recalled that during his screening by the Senate, he had promised that Nigerians would begin to see changes in electricity supply within three to six months.