ELECTRICITY SUBSIDY REMOVAL TO CONTINUE UNDER PHASED TARIFF REFORMS – FG

The Federal Government has reaffirmed its commitment to the gradual removal of electricity subsidies through a structured phased tariff reform programme aimed at achieving cost-reflective pricing in the power sector.

The announcement comes as part of broader efforts to address the huge fiscal burden of subsidies, improve liquidity in the electricity market, and attract much-needed investment into generation, transmission, and distribution infrastructure.

Officials explained that the phased approach will allow for gradual adjustment of tariffs while implementing targeted interventions to protect vulnerable consumers. These include expanded social safety nets, metering programmes, and efficiency improvements by electricity distribution companies.

Stakeholders have mixed reactions, with some welcoming the move for long-term sustainability while others express concerns over the impact on consumers amid current economic hardships.

The government assured that reforms will be accompanied by measurable service delivery improvements, including reduced outages and better customer service. The policy aligns with the Electricity Act 2023 and ongoing market liberalisation efforts.