Federal government plans to eliminate electricity subsidies by 2027, Power Minister Joseph Tegbe said on Wednesday.
Speaking at the inauguration of a 3-megawatt solar hybrid power project at Yakubu Gowon University, Tegbe said the administration of President Bola Tinubu had been mandated to clear legacy debts in the power sector and put sustainable structures in place to prevent further accumulation.
“We have the mandate of Mr President to clear the legacy debt and come up with sustainable structures to make sure this doesn’t pile up any more,” Tegbe said.
“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector. Mr President, we will not deprive Nigerians of anything. We’ll make sure Nigerian consumers continue to have power and improve power services.”
The planned removal follows the earlier elimination of fuel subsidies, which has contributed to higher transport and living costs since May 2023.
Nigerians currently on a ₦70,000 minimum wage are paying as much as ₦1,500 per litre for petrol. Critics warn that ending electricity subsidies could further strain household budgets.
The World Bank, in its 2025 Nigeria Development Update, projected that inflationary pressures, particularly food prices, could push about 141 million Nigerians into poverty by 2026. While the bank praised the government’s reform steps, it noted that more needed to be done to improve living standards.
