After Petrol Subsidy Shock, Electricity Subsidy Next? Nigerians Brace for Tougher Times
By Passman Akpos
The Federal Government has announced plans to phase out electricity subsidies beginning in 2027 as part of sweeping reforms aimed at restoring the long-term financial sustainability of Nigeria’s power sector.
Minister of Power, Joseph Tegbe, disclosed the plan on Friday during a media interactive session, where he addressed the mounting debt burden threatening the country’s electricity industry.
According to the minister, the subsidy removal is part of a broader strategy to reduce the growing financial liabilities in the power sector and create a more sustainable electricity market.
Despite concerns that the policy could trigger higher electricity bills, Tegbe assured Nigerians that there are no immediate plans to increase electricity tariffs.
He explained that while subsidy payments will gradually be eliminated from 2027, the government is committed to protecting consumers in the short term and ensuring that the reforms do not automatically translate into higher costs for electricity users.
“The objective is to resolve the sector’s persistent debt challenges while maintaining the benefits consumers currently enjoy,” the minister said.
Nigeria’s electricity sector has struggled for years with huge subsidy obligations, unpaid market debts, inadequate investments, and poor infrastructure, raising concerns over its long-term viability. Industry stakeholders have repeatedly warned that without structural reforms, the sector could face deeper financial instability.
The government’s latest announcement signals a significant shift in its approach to managing the power sector, with officials insisting that the reforms are necessary to ensure reliable electricity supply and attract private investment.
Buratai Raises Alarm Over Rising PovertyMeanwhile, former Chief of Army Staff, Lt.-Gen. Tukur Yusuf Buratai (Rtd.), has expressed concern over the worsening economic hardship in Nigeria.
Speaking at the 60th birthday celebration of former Rivers State Governor and ex-Minister of Transportation, Rotimi Amaechi, Buratai described the current level of poverty under President Bola Ahmed Tinubu’s administration as “radical, massive and sudden.”
According to him, while poverty had been increasing gradually over the years, the current economic situation has deteriorated at a much faster pace.
“It is massive and sudden,” Buratai said, adding that the hardship being experienced by Nigerians is unlike previous periods because of the speed and scale of the economic decline.
His comments come amid growing public concern over inflation, rising living costs, fuel price increases, and ongoing economic reforms that have placed additional pressure on households across the country.
The government’s planned electricity subsidy phase-out is expected to spark fresh debate over the balance between economic reforms and the welfare of ordinary Nigerians, particularly as many citizens continue to grapple with the country’s rising cost of living.
