The Federal Government has announced plans to phase out electricity sector subsidies starting next year, marking a major step toward long-term financial sustainability in the Nigerian Electricity Supply Industry.
Minister of Power Joseph Tegbe shared the roadmap during a media interactive session on Friday while addressing ongoing liquidity challenges and legacy debts across the power value chain.
He explained that the gradual removal of the subsidy is designed to transition the market toward cost-reflective reality without creating sudden disruptions for consumers.
Addressing public concerns over immediate impacts, the minister assured that the transition will not deprive citizens of essential benefits, confirming that there are no current plans for an immediate increase in electricity tariffs.
Instead, immediate priorities remain focused on scaling up universal metering to eliminate estimated billing, clearing verified debts owed to generation companies, and optimizing grid performance.
The administration emphasized that building a self-sustaining power market is vital to attracting the massive private investment needed to guarantee reliable electricity for homes and businesses nationwide.
