FG to End Electricity Subsidy in 2027 — Power Minister

FG to End Electricity Subsidy in 2027 — Power Minister

The Federal Government has announced plans to end electricity subsidies in 2027 as part of efforts to address the financial challenges confronting Nigeria’s power sector.

The Minister of Power, Joseph Tegbe, disclosed this on Wednesday while speaking at the inauguration of a three-megawatt solar-hybrid power project at Yakubu Gowon University.

Tegbe said the government had been mandated by President Bola Tinubu to address the sector’s outstanding debts and establish a sustainable financing framework that would prevent the accumulation of further liabilities.

“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 any more,” the minister said.

He added that the government intended to bring an end to electricity subsidies in 2027 while ensuring that consumers continued to receive and benefit from improved electricity services.

“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, we will not deprive Nigerians of anything. We’ll make sure Nigerian consumers continue to have power and improve power services,” Tegbe said.

The proposed policy comes amid continued concerns over the rising cost of living following the removal of the petrol subsidy in 2023.

The petrol subsidy removal has contributed to significant increases in transportation and other household expenses, with Nigerians continuing to contend with elevated food, energy and other living costs.

The government’s planned withdrawal of electricity subsidies could further affect household and business energy costs, depending on how the policy is implemented and the extent to which electricity tariffs are adjusted.

The World Bank, in its 2025 Nigeria Development Update, warned that persistent inflationary pressures, particularly rising food prices, could push a large number of Nigerians into poverty.

While acknowledging the Federal Government’s economic reforms and efforts to stabilise the economy, the World Bank said further measures would be required to ensure that the benefits of the reforms translated into improved living standards for Nigerians.

The planned subsidy reform is therefore expected to form part of the government’s broader efforts to address the financial sustainability of the electricity market while improving power supply and service delivery.