FG To End Electricity Subsidy From 2027 - Politics

FG To End Electricity Subsidy From 2027 - Politics - Nairaland

Nairaland Forum › Nairaland General › Politics › FG To End Electricity Subsidy From 2027 (9657 Views)

FG To End Electricity Subsidy From 2027 by Ofunaofu(op): 10:07pm On Jul 31

The Federal Government has announced plans to phase out electricity subsidy payments from 2027 as part of efforts to address mounting debts in the power sector.

Minister of Power Joseph Tegbe disclosed the plan during a media interactive session on Friday, saying the subsidy would be removed gradually and consumers would not lose access to electricity services.

“We have the mandate of Mr President to clear the legacy debt and come up with sustainable structures to make sure this doesn’t pile up any more,” Tegbe said.

“I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector. Mr President, we will not deprive Nigeria of anything. We’ll make sure Nigerian consumers continue to have power and improve power services.”

The minister also said there is no immediate plan to increase electricity tariffs.

The announcement aligns with recommendations by the International Monetary Fund for Nigeria to gradually remove electricity subsidies.

The government has previously put the subsidy burden at about N3 trillion as of February 2024, while the Association of Power Generation Companies says GenCos are owed roughly N6.5 trillion.

Tegbe’s comments come amid ongoing efforts to clear legacy debts in the sector. President Bola Tinubu recently approved a N4 trillion bond programme for debt settlement.

In January, the government issued a N501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme. On July 20, it announced a second tranche worth about N729 billion to settle verified debts owed to power generation companies.

Earlier this year, Tinubu also directed ministries, departments and agencies to use existing electricity laws to determine how subsidy costs should be shared among the federal, state and local governments in the 2026 budget

https://www.vanguardngr.com/2026/07/fg-to-end-electricity-subsidy-from-2027/

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Re: FG To End Electricity Subsidy From 2027 by Jakarta: 10:42pm On Jul 31

Long overdue, DisCos are using this subsidy rubbish as an excuse to scam customers paying cost respective tariffs.

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Re: FG To End Electricity Subsidy From 2027 by youngsahito(m): 11:16pm On Jul 31

Jakarta:
Long overdue, DisCos are using this subsidy rubbish as an excuse to scam customers paying cost respective tariffs.

why can't the same govt provide free prepaid for all electricity user. They should create another agency for that.

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Re: FG To End Electricity Subsidy From 2027 by Jakarta: 11:28pm On Jul 31

youngsahito:
why can't the same govt provide free prepaid for all electricity user. They should create another agency for that.

They did, but the greedy and inefficient DisCos sold most of the meters to consumers, despite the then minister of power Mr Adebayo Adelabu asking DisCos not to charge customers for either acquisition or installation cost. An agency will only make things worse. Make government remove hand for electricity, they should only regulate.

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Re: FG To End Electricity Subsidy From 2027 by Sheuns(m): 8:27am On Aug 01

They’ve started again. When it’s time for them to hike prices, they come with subsidy removal claims.

What they fail to tell us is how much exactly they are paying as subsidies and how much are the people paying.

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Re: FG To End Electricity Subsidy From 2027 by Goo0dHardDick: 8:27am On Aug 01

More hardship is loading for Nigerians.

Those phoos should better leave things as it is now before they'll hike electricity bill

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Re: FG To End Electricity Subsidy From 2027 by jojothaiv(m): 8:28am On Aug 01

Hopefully, we will see what come after this subsidy removal.

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Re: FG To End Electricity Subsidy From 2027 by AdolfHitlerxXx: 8:29am On Aug 01

Petrol Subsidy was removed ... poverty ensued.

The dollar defending which worked for decades , when it was removed actually tanked our economy.

APC should have sent the ground work for industrialization first before stopping the forex defence. They have had 11 years to do so, zero changes.

Supported APC and Tinubu but the truth is, these policies are IMF backed and didn't work. Na fat lie

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Re: FG To End Electricity Subsidy From 2027 by Fatbam003: 8:29am On Aug 01

Meanwhile,solar has been heavily mounted in Aso rock

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Re: FG To End Electricity Subsidy From 2027 by Deon28(m): 8:29am On Aug 01

If not corruption, what stopped government from providing prepaid meters to Nigerians

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Re: FG To End Electricity Subsidy From 2027 by givedemwotowoto: 8:29am On Aug 01

After 2027 if Tinubu ever wins reelection, he’ll descend on Nigerians with all his might

Then the complaints and excuses will start again: “They promised us he’ll fix things in his second term”

After witnessing Buhari’s 2 terms in office and how they claimed he will fight corruption in his second term, after witnessing TraderMoni disappear immediately after election, how many times will you be lied to and deceived before you use your common sense?

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Re: FG To End Electricity Subsidy From 2027 by Ofunaofu(op): 8:30am On Aug 01*

Tinubu's second term, if allowed to happen, will be hell on earth.

Every suspended, delayed or currently denied price increase; WAEC/NECO fees, call and data tariffs, electricity tariffs, passport fees, fuel prices, transaction charges, cooking gas prices, and many more would be let loose.

Add the attendant inflation and worsening insecurity, and we'd all be in a rat race, competing over which price climbs highest.

That's Tinubu

He is an evil weapon fashioned against ordinary Nigerians

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Re: FG To End Electricity Subsidy From 2027 by Tooreda(f): 8:32am On Aug 01

Since you guys don’t want to have sense, I’ll advise that you embrace your shackles wholeheartedly.

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Re: FG To End Electricity Subsidy From 2027 by epainos: 8:32am On Aug 01

It takes a lot of gut to remove subsidies and I am so happy this is happening. Subsidies habe killed Nigeria.

What is going to happen? Govt will keep on doing it, and they will over do it. Lol. Then, everyone will sit tight and the fight will be real. A balance will be reached somehow. Lol.

For example, govt will want to remove all subsidies on agric too. Lol. Thats when they will realise that ha...mmmba!!! Lol.

But sincerely speaking....electric, gas, oil, subsidies must go. People will sit tight now. Discos will go wild with illegal connections and deal ruthlessly with their dishonest staff memebers. Thats it. All the chicken change bribes were and there will end.

Customers too will start raising alutas at a slight cheat from Discos.

Also, solar will take over. The lithium industry will come into effects. Govt will quickly start taxing solar panels mounted on roofs. Lol. Na so na. Discos will be proactive. Guess what...people will start installing more energy than they need and sell to Discos. You find customers taking weekly or monthly payments from Discos soon instead of what is happening now.

This is making the system work out by itself instead of forcing it to work with subsidies. Subsidies only created opportunists in Nigeria because we took it too far. We should habe balanced it a long time ago.

I support using subsidies the right way and not using it toncreat more problems.

Everyone will sit tight. Everyone will be fine.

youngsahito:
why can't the same govt provide free prepaid for all electricity user. They should create another agency for that.

free prepaid is still subsidy.

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Re: FG To End Electricity Subsidy From 2027 by temmyyem: 8:33am On Aug 01*

I have told you, there's nothing called govt. This is the power that be shutting down the system. It's happening in America and many places.

The source of energy is free, (sun, water, nuclear, gas etc) Nigeria have all of these in abundance. Is the govt building generator on daily basis that the billions of dollars they make as profit not enough to run the sector?

Wake-up, it's a very rough road ahead, the world is going through reset, agenda 2030 ( you will own nothing and be happy) hence the reason for the increase in digital prison infrastructure (cashless society, biometric ID, GMO, organ harvest etc)

Get a land for organic farming and weapons to protect yourselves, what's happening in northern Nigeria which is already spreading to south west is a child play compared to what is coming.

https://www.youtube.com/watch?v=hR_gCHd6lG8?is=UQ-yY2ffmUBH2RLo

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Re: FG To End Electricity Subsidy From 2027 by saasala(m): 8:34am On Aug 01

Removing the subsidy is not the problem.

The problem be say wetin una dey do with the money wey una dey save from the removal.

He come be like say the more them dey commot subsidy the more hardship

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Re: FG To End Electricity Subsidy From 2027 by 2tpick: 8:35am On Aug 01

They will still come and tell us that no money was saved from the removal of electricity subsidy. It's either they create a netfund equivalent in the power sector to siphon funds and subject millions of citizens to further hardship.
More money to build houses for judges and sustain the exorbitant cost of governance

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Re: FG To End Electricity Subsidy From 2027 by jojo1415: 8:35am On Aug 01

When we have rascals at the helm of affairs....what do we expect?😢

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Re: FG To End Electricity Subsidy From 2027 by Flangelo12: 8:35am On Aug 01

temmyyem:
I have told you, there's nothing called govt

Ask Nnamdi Kanu if he think so.

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Re: FG To End Electricity Subsidy From 2027 by Debroslink: 8:36am On Aug 01

Brace up for 1 unit = 400 naira

That will be minimum of 60k/month spent on electricity by each household.

What's the minimum wage again?

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Re: FG To End Electricity Subsidy From 2027 by MoneyMan5: 8:36am On Aug 01

Sooner or later Nigerians will have to realize that having stable electricity is not cheap, the reality may be difficult to bear but even Developed countries, cost of electricity is not cheap, but Nigerians should think long term and stop thinking short terms, think about the economic boom after stable electricity.

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Re: FG To End Electricity Subsidy From 2027 by Azazi(m): 8:39am On Aug 01

Phase two suffering loading, I hope Nigerians will be wiser not to allow this calamity come back in 2027.

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Re: FG To End Electricity Subsidy From 2027 by abelee(m): 8:40am On Aug 01

Deon28:
If not corruption, what stopped government from providing prepaid meters to Nigerians

Did government provide mobile phones for you to access telecoms networks

For you to enjoy premium services in Nigeria, we must be ready to pay premium prices for them like it is all over the world. Let us be careful what we wish for in Nigeria.

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Re: FG To End Electricity Subsidy From 2027 by Azazi(m): 8:40am On Aug 01

Phase two suffering loading, I hope Nigerians will be wiser not to allow this government come back in 2027.

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Re: FG To End Electricity Subsidy From 2027 by Greatex90: 8:40am On Aug 01

Hardship is coming says TINUBU , APC government.
Nigerians should rather vote this party out than brace up to this kind of suffering

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Re: FG To End Electricity Subsidy From 2027 by Debroslink: 8:41am On Aug 01

MoneyMan5:
Sooner or later Nigerians will have to realize that having stable electricity is not cheap, the reality may be difficult to bear but even Developed countries, cost of electricity is not cheap.

You want to bill poor Nigerians like developed countries, but can't pay minimum wage like developed countries.

You people in government are evil.

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Re: FG To End Electricity Subsidy From 2027 by givedemwotowoto: 8:42am On Aug 01

MoneyMan5:
Sooner or later Nigerians will have to realize that having stable electricity is not cheap, the reality may be difficult to bear but even Developed countries, cost of electricity is not cheap.

Electricity is cheap compared to people’s income abroad, plus government provides a lot of subsidies for low income earners and retired people.

The lowest income person in America based on a minimum wage of $7.25 per hour only needs to work for about 13hrs to be able to afford electricity for 1 month.

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Re: FG To End Electricity Subsidy From 2027 by Dogalmighty17: 8:42am On Aug 01

Guess how much Japan paid as subsidy for its citizens so far to cushion the effects of the Iranian war. 290 billion dollars! It is only Nigeria that has embraced useless neo-liberal economic policies that the west don't force on their citizens.

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Re: FG To End Electricity Subsidy From 2027 by princepee(m): 8:43am On Aug 01

Take your subside, give every house hold pre paid meter ..
No more estimated billing.
Let everyone pay for what they use.
So it should be first thing first

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Re: FG To End Electricity Subsidy From 2027 by Debroslink: 8:43am On Aug 01

abelee:
Did government provide mobile phones for you to access telecoms networks

For you to enjoy premium services in Nigeria, we must be ready to pay premium prices for them like it is all over the world. Let us be careful what we wish for in Nigeria.

Can't the government raise minimum wage to stand toe to toe with other countries of the world?

You guys are pure evil. EOD

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Re: FG To End Electricity Subsidy From 2027 by tiswell(m): 8:43am On Aug 01

Nigerians must sew endurance dresses and wear cos it's gonna be be a long ride.

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Re: FG To End Electricity Subsidy From 2027 by Vision101(m): 8:46am On Aug 01

givedemwotowoto:
After 2027 if Tinubu ever wins reelection, he’ll descend on Nigerians with all his might

Then the complaints and excuses will start again: “They promised us he’ll fix things in his second term”

After witnessing Buhari’s 2 terms in office and how they claimed he will fight corruption in his second term, after witnessing TraderMoni disappear immediately after election, how many times will you be lied to and deceived before you use your common sense?

He's focused on finding lasting solution to our problems. It may result to initial shocks. Petrol is expensive but no more petrol scarcity. We would have faced severe scarcity because of Iran/US war.

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