The Federal Government has noted that it will begin phasing out electricity subsidies from 2027 as part of reforms aimed at addressing mounting financial challenges in the power sector.

Minister of Power, Joseph Tegbe, disclosed that the reforms are designed to ensure the long-term sustainability of the electricity industry.

Tegbe said the planned subsidy withdrawal will not be accompanied by an immediate increase in electricity tariffs, assuring consumers that there are no short-term plans for a tariff hike.

He explained that the government's objective is to build a commercially viable power sector while protecting vulnerable electricity users. The minister added that the Power Consumer Assistance Fund will be used to cushion the impact of the reforms on vulnerable consumers.

Tegbe said details of the implementation timeline and consumer protection measures will be announced as the reform process progresses, noting that electricity subsidies have remained a major fiscal burden on the country.