The minister of Power, Joseph Tegbe has revealed that the federal government plans to phase out subsidy payments in the power sector from 2027.
He made this known on Friday during a media interactive session, while speaking on power sector debts.
He said the subsidy would be gradually removed, but noted that Nigerians will not be deprived of any benefits.
The minister also reiterated that there was no plan to increase tariffs in the immediate term.
It was revealed that the government may shift instead to shared federal-state funding and cost-reflective tariffs, as between 2026 and 2028, a total of ₦3.6 trillion (₦1.2 trillion annually) is slated for deduction directly from the Federation Account to manage the subsidy, sharing the cost among federal, state, and local governments.
(Ripples)