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FG To End Electricity Subsidy In 2027 - Politics (7) - Nairaland

Nairaland Forum › Nairaland General › Politics › FG To End Electricity Subsidy In 2027 (11189 Views)

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Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 2:45am On Aug 29
Willie2015:
Prof Barth Nnaji is a technical expert...

He can be correct technically but wrong using the political and social sustainability angle.

Nigerians are already dealing with fuel-subsidy removal, higher taxes, food inflation and declining purchasing power.

Imposing another major cost shock—even if economically justified—can make the entire reform politically unsustainable.

A technically perfect reform that the public rejects is not a successful reform.
The problem is electricity subsidies are not sustainable. If they were , I won't be here calling for their removal.

At the end , Nigeria has been doing this cheap electricity thing for nearly six decades. And since 1978 power cuts have not let us rest. At some point this country has to wake up to the fact that we got to try something different. Shouting up and down that all we need to do is to fight corruption won't cut it especially since the said corruption is being fuelled by the subsidy thing.

Yes subsidy fuels corruption in the sector. It is free money that is not worked for. If the sector had to earn its money by subsidy not being there, it would have improved since.

At some point we had to accept that subsidy was not working in the sugar and in the petroleum sectors. And they had to go. Now we produce sugar by the tonne and we are beginning to export petrol . Why deny the opportunity for the free market to power up the electricity sector by doing its thing and stop the pretence that subsidy is sustainable when government still owes trillions of naira and is even trying to get out of paying half of it?
Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 2:51am On Aug 29
Ji
Ankakh:
Plenty talk. Very little specifics. What are the exact things that will change in the power sector - across generation, transmission and distribution? Not to talk of the customer experience.

Even developed nations still find a way to "subsidize" certain services. That's part of how you make the commonwealth actually go round the citizens. It's not just by sharing money.
Developed nations also pay heavy taxes for the same subsidies. That is how they fund them. And the subsidies are not for everyone , they are for people below a certain threshold financially

Taxes you guys won't want to pay if they were introduced in Nigeria..

One Danish airport worker told a group of Nigerian journalists at the airport in Copenhagen that his family benefited from free education and free healthcare...in return for him paying half his salary
Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 4:05am On Aug 29
sematec:
There was no time electricity subsidy was introduced
This govt is a scam always finding ways to fleece the Nigerian population more of their hard earned money... Yet the govt is not solving problems
I have some questions for you.

1. What is a subsidy
2. What do you understand by a cost reflective tarrif.
Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 4:09am On Aug 29
Blanket electricity subsidies foster corruption and operational inefficiency by masking true costs, distorting market signals, and creating lucrative avenues for financial diversion.


How Subsidies Fuel Inefficiency

Kills the Incentive to Improve: When governments cover the financial shortfalls of power utilities, companies have little market pressure to upgrade outdated infrastructure, reduce technical loss, or fix broken grids.


Encouraging Losses and Theft: Subsidized or underpriced power weakens the drive to tackle commercial losses, such as energy theft, illegal connections, and meter tampering.

Capital Starvation: Massive public funds spent on open-ended subsidy claims drain national budgets. This crowds out critical investments in new generation capacity, transmission redundancy, and country-wide metering.

How Subsidies Breed Corruption

Opaque Accounting: Complex chains involving government agencies, bulk traders, and distribution companies create ideal conditions for inflated claims, ghost consumers, and missing funds.

Regulatory Capture: Subsidies rely on heavy political control over pricing. This environment encourages corruption through the rewarding of politically connected contractors and selective favoritism.


Rent-Seeking Behavior: Operators and intermediaries often find it more profitable to manipulate subsidy verification and capture state bailouts than to efficiently deliver electricity to end users.
For the record.
Re: FG To End Electricity Subsidy In 2027 by Ilola(f): 4:22am On Aug 29
No they wont fix electricity, Aso rock already got solar.
Rubyjade:
I actually support the idea of ending electricity subsidies if the government is genuinely prepared to fix the power sector first. But we need to be careful not to celebrate subsidy removal as if it automatically means better electricity.

For years, Nigerians have been paying for darkness in one form or another—electricity bills, fuel for generators, diesel for businesses, inverter batteries and the cost of replacing damaged appliances. If subsidy is removed while the quality of supply remains the same, Nigerians will simply be paying more for the same poor service.

The real question is: what exactly is changing before 2027?

Are the debts to GenCos and other players being cleared? Are transmission and distribution networks being upgraded? Are DisCos being held accountable for estimated billing and poor service? Are we creating a system where consumers actually pay according to the electricity they receive?

Because removing subsidy is not reform by itself.

Government should first build a power market that can survive without permanent intervention, while protecting poor and vulnerable Nigerians from sudden tariff shocks.

If the subsidy must go, let it go alongside reliable electricity, transparent billing, stronger regulation and measurable improvements in service.

Nigerians don't necessarily want government to keep subsidising inefficiency forever. We want a system where we can pay for electricity and actually get electricity.

Otherwise, we will remove the subsidy from the power sector and quietly transfer the same cost to generators, diesel, petrol, businesses and households.

That isn't reform. That's simply moving the suffering from one pocket to another.
Re: FG To End Electricity Subsidy In 2027 by Hormoh1988: 4:27am On Aug 29
Naa to install correct solar inverter....Bleep your power supply
Re: FG To End Electricity Subsidy In 2027 by Jjthyena: 5:50am On Aug 29
I NEED ADVICE ON A SERIOUS ELECTRICITY/METERING ISSUE**
Is is happening in lekki
I’m looking for opinions and practical advice from people who may have experienced something similar.

Since moving into a property in late 2024, I’ve had ongoing problems with electricity supply and the prepaid meter. I repeatedly purchased electricity tokens, but there were periods when the property received little or no electricity despite the payments.

I reported the issue several times and was told the meter would be repaired or replaced. There was also an electrical/fire incident within the estate, after which the meter was said to have been affected. Despite this, the problem continued for a long time.

During periods when electricity was unavailable, I relied heavily on a generator and inverter. However, I was still presented with very high electricity charges that I do not believe reflected my actual usage. At one point, I was told that I owed a very large amount of 3 million even though the meter had previously been described as faulty/not properly recording consumption., and I also traveled out the country for 9 months, so the house is empty and on gen change over.

The meter was eventually removed, but I have concerns about how the electricity usage and previous charges were calculated., mind you ekedc does not recognize the meter , and the meter is a prepaid meter with no token being reading without my knowledge.

**Another thing that concerns me is that I now suspect that my electricity may be getting tapped or that there could be some form of unauthorized connection somewhere in the system. I don't have proof of this yet, which is why I'm asking for advice before making any accusation.**

My questions are:

1. **How can I independently determine whether my electricity is being tapped or whether there is an unauthorized connection?**
2. If I install **solar power**, how can I monitor/trace my electricity usage afterward and determine whether something else is drawing power from my system?
3. What type of electrician or electrical professional should I hire to properly inspect the wiring, meter connection, distribution board, and surrounding connections?
4. What equipment or monitoring system can I install to track exactly how much electricity my property is consuming?
5. Has anyone experienced a situation where a faulty prepaid meter continued generating disputed/high charges?
6. What would you recommend I do before spending more money on electricity infrastructure or installing solar?

I’m mainly looking for **practical advice from people who understand electrical systems, prepaid meters, solar installations, or have personally experienced something similar.**

Please share what you would do in this situation and what steps you would take to properly trace the electricity usage.
I NEED ADVICE ON A SERIOUS ELECTRICITY/METERING ISSUE**
Is is happening in lekki
I’m looking for opinions and practical advice from people who may have experienced something similar.

Since moving into a property in late 2024, I’ve had ongoing problems with electricity supply and the prepaid meter. I repeatedly purchased electricity tokens, but there were periods when the property received little or no electricity despite the payments.

I reported the issue several times and was told the meter would be repaired or replaced. There was also an electrical/fire incident within the estate, after which the meter was said to have been affected. Despite this, the problem continued for a long time.

During periods when electricity was unavailable, I relied heavily on a generator and inverter. However, I was still presented with very high electricity charges that I do not believe reflected my actual usage. At one point, I was told that I owed a very large amount of 3 million even though the meter had previously been described as faulty/not properly recording consumption., and I also traveled out the country for 9 months, so the house is empty and on gen change over.

The meter was eventually removed, but I have concerns about how the electricity usage and previous charges were calculated., mind you ekedc does not recognize the meter , and the meter is a prepaid meter with no token being reading without my knowledge.

**Another thing that concerns me is that I now suspect that my electricity may be getting tapped or that there could be some form of unauthorized connection somewhere in the system. I don't have proof of this yet, which is why I'm asking for advice before making any accusation.**

My questions are:

1. **How can I independently determine whether my electricity is being tapped or whether there is an unauthorized connection?**
2. If I install **solar power**, how can I monitor/trace my electricity usage afterward and determine whether something else is drawing power from my system?
3. What type of electrician or electrical professional should I hire to properly inspect the wiring, meter connection, distribution board, and surrounding connections?
4. What equipment or monitoring system can I install to track exactly how much electricity my property is consuming?
5. Has anyone experienced a situation where a faulty prepaid meter continued generating disputed/high charges?
6. What would you recommend I do before spending more money on electricity infrastructure or installing solar?

I’m mainly looking for **practical advice from people who understand electrical systems, prepaid meters, solar installations, or have personally experienced something similar.**
Re: FG To End Electricity Subsidy In 2027 by wildernessVoice: 5:59am On Aug 29
We are still waiting for APC 247 uninterrupted power supply without estimated billing otherwise all their votes in 2027 shall automatically be voided.
Re: FG To End Electricity Subsidy In 2027 by nnamdi640: 6:05am On Aug 29
Instead of them to be talking about improving the power sector, they are talking about removing subsidy as if we are having 24 hours light, they should just tell us they want to increase the tariff
Re: FG To End Electricity Subsidy In 2027 by femi4: 6:39am On Aug 29
Jakarta:
That's a valid cause for concern, but I strongly believe it won't. In worst case scenario the service will be poor for the first 1-3 years. But it will definitely improve, because given the high demand for power, foreign investors will likely invest in both power generation and distribution which will lead to competition in that sector, and competition almost always favour the consumer. See how Airtel, Glo, MTN are digging it out, in the telecoms sector, do you still remember any of NITEL, Econet, TMobile, Zain, or even Etisalat? That's how many of these Discos will be forgotten.
Its like we dont learn from history

Increase in tarrif has never fix power, so it wont start fixing it now

2. You cant compare power to telecom cos of the stages involved, infact we are paying more to the telcos cos of unreliable power supply.

We have challenges with generation, xmission n distribution
Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 6:43am On Aug 29
nnamdi640:
Instead of them to be talking about improving the power sector, they are talking about removing subsidy as if we are having 24 hours light, they should just tell us they want to increase the tariff
Removing subsidy and allowing a cost reflective tarrif would attract investors who would pour in money into the sector in return for making profit which would lead to better power supply
Re: FG To End Electricity Subsidy In 2027 by Jakarta: 7:06am On Aug 29
femi4:
Its like we dont learn from history

Increase in tarrif has never fix power, so it wont start fixing it now

2. You cant compare power to telecom cos of the stages involved, infact we are paying more to the telcos cos of unreliable power supply.

We have challenges with generation, xmission n distribution
I understand your point of view. Yes increasing tarriffs will never fix power, but not paying cost reflective tarriffs won't fix power either. See the ABA power plant for example, their customers are enjoying reliable electricity, they are also paying the true value of the electricity they received.
Re: FG To End Electricity Subsidy In 2027 by Jakarta: 7:07am On Aug 29
efemena5050:
English just to sound so intelligent
English hard I understand.
Re: FG To End Electricity Subsidy In 2027 by Jakarta: 7:13am On Aug 29
WhizdomXX:
Where do discos collect fat checks from Abuja as subsidy payments?
Band E users in my Area in Delta state haven't witness power for over 6 months now due to a faulty transformer, but The Benin Electricity Distribution Company (BEDC) still somehow sneak in to drop estimated billings, and still collect fact checks in subsidy payments from Abuja for power they never distributed to this users. Na customers supposed to dey repair or install transformers?
Re: FG To End Electricity Subsidy In 2027 by WhizdomXX(m): 7:27am On Aug 29
Jakarta:
Band E users in my Area in Delta state haven't witness power for over 6 months now due to a faulty transformer, but The Benin Electricity Distribution Company (BEDC) still somehow sneak in to drop estimated billings, and still collect fact checks in subsidy payments from Abuja for power they never distributed to this users. Na customers supposed to dey repair or install transformers?
I'm familiar with the power situation in Delta but When did Abuja start paying discos?
Re: FG To End Electricity Subsidy In 2027 by zinowealth: 7:45am On Aug 29
anonimi:
This APC government has SAID they got electricity right, just like they promised when Fashola told us that we have to replace PDP with their own party to get power in six months.



https://www.youtube.com/watch?v=Lba6Uf64Ogc
Apc is like a plague upon Nigerians. God want us to be wise but yet some are still enjoying darkness and failure
Re: FG To End Electricity Subsidy In 2027 by Jakarta: 7:59am On Aug 29
WhizdomXX:
I'm familiar with the power situation in Delta but When did Abuja start paying discos?
Where is your FG based?
Re: FG To End Electricity Subsidy In 2027 by one4GOD(f): 7:59am On Aug 29
FuglyGurl:
https://www.vanguardngr.com/2026/07/fg-to-end-electricity-subsidy-from-2027/
unah don hear am, no later naow unah go start crying over split milk, if u like no reason ur life and future at the polls.
Re: FG To End Electricity Subsidy In 2027 by Ahmeduana(m): 8:18am On Aug 29
Gotocourt:
More reasons why these bandits must go angry.


There's Tax implementation loading January 2027🤷‍♂️
And am praying that may APC under Tinubu keep going wrong so that the anger in Nigeria masses will keep multiplying so that it will propel us to eject ⏏️ and purge coven of evil men and women out Nigeria political space
Re: FG To End Electricity Subsidy In 2027 by nnamdi640: 8:32am On Aug 29
nairalanda1:
Removing subsidy and allowing a cost reflective tarrif would attract investors who would pour in money into the sector in return for making profit which would lead to better power supply
I don't think so, the issue of subsidy removal has been a mirage in this country, same way he declared the removal of subsidy the week he was sworn-in, his decision just brought in hardship to this country nothing more.... You have to put things in place before talking about subsidy removal, the suffering he created has dealt with the masses, here he is trying to create another suffering
Re: FG To End Electricity Subsidy In 2027 by Gab1976(m): 8:33am On Aug 29
Has there being any Subsidy in the power sector alll this while. if, why are we paying so much for the Epilectic power supply since.
Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 8:36am On Aug 29
nnamdi640:
I don't think so, the issue of subsidy removal has been a mirage in this country, same way he declared the removal of subsidy the week he was sworn-in, his decision just brought in hardship to this country nothing more.... You have to put things in place before talking about subsidy removal, the suffering he created has dealt with the masses, here he is trying to create another suffering
Removal of a subsidy is not meant to relieve hardship, it is meant to make the sector from which subsidy is removed attract more investment, and make enough profit to provide improved services, expanded services, which would in turn create jobs and more jobs, without costing the government much of a kobo, or generating more debt for the country.
Re: FG To End Electricity Subsidy In 2027 by WhizdomXX(m): 10:58am On Aug 29
Jakarta:
Where is your FG based?
Abuja, but they don't pay discos to the best of my knowledge.
Re: FG To End Electricity Subsidy In 2027 by Jakarta: 11:03am On Aug 29
WhizdomXX:
Abuja, but they don't pay discos to the best of my knowledge.
So na you dey pay Disco subsidy money abi?
Re: FG To End Electricity Subsidy In 2027 by Coolgent(m): 4:04pm On Aug 29
I will never for any Amala/agbado president again!
Re: FG To End Electricity Subsidy In 2027 by nnamdi640:
nairalanda1:
Removal of a subsidy is not meant to relieve hardship, it is meant to make the sector from which subsidy is removed attract more investment, and make enough profit to provide improved services, expanded services, which would in turn create jobs and more jobs, without costing the government much of a kobo, or generating more debt for the country.
Yes subsidy removal doesn't relieve hardship but rather increase it, don't you think the hardship is becoming unbearable for the masses and yet he is trying to add more to the previous one and to you, it is normal.
Re: FG To End Electricity Subsidy In 2027 by nairalanda1(m): 5:45pm On Aug 29
nnamdi640:
Yes subsidy removal doesn't relieve hardship but rather increase it, don't you think the hardship is becoming unbearable for the masses and here he is trying to add more to the previous one and to you, it is normal.
Do you have any other point to make besides parroting slogans?

Also, I am voting for Obi. It is just I have spent several years reading about subsidy, and in 2011, I made my mind up.

Also, were we not suffering when subsidy was there? Well well, so tell me another story,


I am serious, just because I disagree with you about subsidy does not mean that I don't care about suffering of NIgerians. I DO.

It is just that I am convinced that paying a subsidy would worsen our debt and worsen the suffering of Nigerians that way. Is it wrong to think that way, old man?
Re: FG To End Electricity Subsidy In 2027 by Love800(m): 10:39am On Aug 30
Even though i didn't fully get ur message, atleast you tried educating me, and i also got some few insights from you.

I really appreciate.
Jakarta:
In Delta state people are using line 11, 33 and band A interchangeably even though they are totally different things. You can be on 33KVA lines (Rare I must say) and still not have reliable electricity, if you are not on Band A, same thing applies to 11. Having longer hours of light has nothing to do with line 33 or line 11, it is your band (A,B,C,D,E) that determines that.

33KVA line be like Dangote trailer wey transport cement to your store in bulk (electricity stepdown or power plant). Then line 11 be like pickup Keke or bike wey carry 2-10 bags at once go your branch store or your customer site (transformers, or residential areas) . But if that your customer body full, and him get better road, him fit make arrangements for the Dangote trailer to carry the cement directly to him site. (Industries that use 33KVA lines)

Some companies use 33KVA lines directly, reason why most people call it industrial line a good example is the old Enternit in Sapele that used 33KVA lines to transfer electricity from Ughelli to Sapele for industrial use back then.
Re: FG To End Electricity Subsidy In 2027 by mindtricks: 4:27pm On Aug 30
Image123:
So you think it's about love for me?
Not actually, I think it's about hate.
Re: FG To End Electricity Subsidy In 2027 by zinowealth: 2:04pm On Aug 31
Jakarta:
Ogbeni believe you me, in as much as this current subsidy structure on electricity exist, there can never be noticeable improvement in our power sector.
Make Una leave the power sector like that for us. Na so Una talk talk about subsidy. Today it is the few criminals that re benefiting from its removal. This is a very dishonest and wicked govt. they will never benefit the people. The best Nigerians can do is kick them out no matter their promises
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