FG Announces Plan To Phase Out Electricity Subsidy From 2027
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FG Announces Plan To Phase Out Electricity Subsidy From 2027
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| FG Announces Plan To Phase Out Electricity Subsidy From 2027 |
The Federal Government has unveiled a new direction for Nigeria's power sector, revealing plans to gradually reduce electricity subsidies.
The Federal Government has revealed plans to gradually phase down electricity subsidies starting in 2027, promising Nigerians that the move will not result in an abrupt increase in power bills.
During a media briefing in Abuja on Friday, Minister of Power Joseph Tegbe stated that the government aims to gradually remove power sector subsidies as part of broader reforms.
He did, however, emphasize that consumers would not be robbed of the benefits they already receive under the subsidy plan.
Tegbe also stated that there are no intentions to increase electricity tariffs in the foreseeable future, despite the projected subsidy phase-out.
For years, Nigeria's electrical sector has battled to close a funding gap caused by the disparity between the real cost of generating and transferring power and the amount distribution companies collect from customers.
The federal government has continuously bridged this deficit with subsidy payments, but it now intends to gradually lessen the financial burden beginning in 2027.
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