The Federal Government has announced plans to phase out electricity subsidies beginning in 2027 as part of ongoing reforms aimed at improving the sustainability of Nigeria’s power sector.
According to CDA News Nigeria, the proposed policy is expected to reduce the government’s financial burden while encouraging greater investment in electricity generation, transmission and distribution.
Government officials said the move forms part of broader efforts to establish a cost-reflective electricity tariff system capable of attracting private sector participation and improving the reliability of power supply across the country.
However, the proposal has sparked concerns among consumers and labour groups, who fear that removing the subsidy could lead to higher electricity tariffs and increase the cost of living for households and businesses already grappling with economic challenges.
The Federal Government has assured Nigerians that measures will be introduced to protect vulnerable consumers and minimise the impact of the planned transition.
CDA News Nigeria reports that stakeholders have called for extensive consultations before the implementation of the policy, urging the government to improve electricity supply and service delivery before ending subsidies.
CDA News Nigeria independently verified available information before publication. CDA News Nigeria reports the news gathered from the report, while noting that further details on the implementation framework are expected from the relevant authorities.
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