Nigeria Says No Electricity Tariff Hike, Subsidy Ends 2027

The Nigerian government has announced it will not raise electricity tariffs in the immediate term, focusing instead on improving power supply and implementing a nationwide metering program. The plan to phase out longstanding electricity subsidies will begin in 2027 as part of broader reforms to address a severe sector liquidity crisis.

Minister of Power Joseph Tegbe made the announcements during a stakeholder engagement in Lagos on Friday, July 31, 2026. He stated unequivocally that there is no policy to increase tariffs beyond current levels, aiming to allay public concerns fueled by recent debates over potential hikes. The administration's stated priorities are service improvement, universal metering, and ensuring consumers pay only for the electricity they actually use.

Tegbe explained that the gradual withdrawal of subsidies starting next year is intended to restore financial sustainability to the Nigerian Electricity Supply Industry and halt the accumulation of massive legacy debts. He said President Bola Tinubu has mandated the ministry to clear these verified debts, which officials have previously placed at approximately 2.8 trillion naira owed to generation companies,...