The federal government has announced plans to phase out subsidy payments in the power sector from 2027.
Joseph Tegbe, the minister of power, announced the plan during a media interactive session on Friday, while speaking on the power sector debt.
He said the subsidy will be gradually removed, but noted that Nigerians will not be deprived of any benefits.
The minister also reiterated that there is no plan to increase tariffs in the immediate term.
“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.
“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.”
The plan, if executed, aligns with the International Monetary Fund (IMF) recommendation for Nigeria to phase out electricity subsidy.
