FG to phase out power sector subsidy from next year

The Minister of Power, Joseph Tegbe, has announced plans by the Federal government to phase out subsidy payments in the power sector from 2027.

Tegbe made the announcement during a media parley with newsmen in Abuja on Friday, July 31.

According to the Minister, the subsidy will be gradually removed, but noted that Nigerians will not be deprived of any benefits.

He also ruled out any plans to increase electricity tariffs in the immediate term.

Nigeria’s power sector has long been weighed down by a gap between what distribution companies collect from consumers and what it actually costs to generate and transmit electricity, a shortfall the government has covered through subsidies over the years.