The Federal Government has announced plans to gradually phase out subsidy payments in Nigeria’s power sector beginning in 2027 as part of efforts to address the industry’s growing financial challenges and improve its long-term sustainability.

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Minister of Power, Joseph Tegbe, disclosed the plan during a media interactive session on Friday while responding to questions on the mounting debt in the power sector. He explained that the subsidy removal would be implemented in phases to ensure a smooth transition and minimise the impact on electricity consumers.

Tegbe assured Nigerians that the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime. According to him, the government is committed to implementing reforms that will strengthen the electricity sector while protecting consumers and ensuring improved service delivery. He noted that further details of the phased implementation would be communicated as the government advances its power sector reform agenda.