The Federal Government has reaffirmed its commitment to the gradual removal of electricity subsidies as part of ongoing reforms aimed at transitioning Nigeria’s power sector to a cost-reflective tariff regime.
The government said the subsidy withdrawal would be implemented in phases to ensure the financial sustainability of the electricity market while protecting vulnerable consumers from the full impact of higher tariffs. The clarification comes amid growing public concern over electricity pricing and the future of subsidy payments. Based on official policy documents and recent government statements, Nigeria is pursuing a phased migration to cost-reflective electricity tariffs rather than an immediate removal of subsidies.
Speaking on the reforms, the Minister of Power, Adebayo Adelabu, said the current subsidy regime is no longer sustainable, noting that the government spends trillions of naira annually to bridge the gap between the actual cost of electricity generation and the tariffs paid by consumers. He said the reforms are intended to attract investment, improve liquidity across the electricity value chain and enhance power supply.
According to the minister, customers will continue to migrate gradually to cost-reflective tariffs, while targeted support measures will remain in place for low-income and vulnerable households.
