FG to end electricity subsidies from 2027, promises no tariff hike

The Federal Government announced it will end electricity subsidy payments starting in 2027 to address mounting liabilities in the power sector. Minister of Power Joseph Tegbe disclosed the plan at a media briefing on Friday, stating the subsidy phase‑out is part of broader reforms to ensure a commercially viable electricity sector while protecting vulnerable consumers. He emphasized there are no immediate plans to raise electricity tariffs and that the Power Consumer Assistance Fund will cushion the impact on those who need support. The exact implementation timeline and consumer protection measures will be revealed as the reform process proceeds. Nigeria’s electricity subsidy has been a significant fiscal burden, and its removal will affect household and business electricity costs over the coming years. Consumers should monitor government announcements for details on the subsidy rollout and the assistance fund, consider how potential future tariff changes might affect their budgets, and explore energy‑efficient alternatives or alternative power sources where feasible. How will you adjust your electricity usage or budget in anticipation of possible future tariff adjustments, or explore alternative power solutions to mitigate any impact?

SOURCE: https://dailypost.ng/2026/07/31/nigerian-govt-to-stop-electricity-subsidy-payments-from-2027/