The Federal Government has dismissed reports suggesting it plans to remove electricity subsidies or raise power tariffs in the immediate future, despite earlier indications that subsidy reforms could begin in 2027.
The clarification came after comments linked to the Minister of Power, Joseph Tegbe, hinted at efforts to address structural distortions in the electricity sector as part of reforms aimed at improving its financial sustainability.
However, the government later clarified that no decision had been taken to increase electricity tariffs or abolish subsidies, stressing that its current priorities remain improving electricity supply, expanding metering, strengthening transmission infrastructure, and stabilising the national grid.
The reversal has reignited public debate, with political analysts, power sector experts, and electricity consumers questioning what they describe as inconsistent government policy signals.
Analysts Question Timing
Political scientist Professor Kamilu Sani Fagge of the University of Kano argued that the government’s decision to back away from subsidy discussions may have been driven by political considerations.
According to him, the issue could resurface after elections, adding that the growing economic burden on Nigerians may have influenced the government’s decision to pause any subsidy removal plans for now.
Fagge also maintained that citizens have the power to influence government policies but often fail to hold leaders accountable through democratic means.
Experts Warn Tariff Hike Won’t Guarantee Better Supply
Electricity experts also cautioned that removing subsidies alone would not automatically improve electricity supply, pointing to the country’s experience after the removal of petrol subsidies.
Electrical engineer Jaafar Sulaiman said consumers could simply end up paying more for electricity unless the government addresses longstanding challenges in generation, transmission and distribution.
He noted that while financing remains important to reforming the sector, funding alone cannot solve Nigeria’s electricity problems. Sulaiman also questioned how electricity subsidies are calculated and implemented, saying the issue has become more contentious as tariffs continue to rise.
Businesses Lament Poor Electricity Supply
For many small business owners in Kano, the debate over electricity subsidies is less important than the struggle to access reliable power.
Trader Sa’idu Bala Mainkanti said electricity is often supplied late at night when most businesses have already closed, making it virtually useless for daytime commercial activities.
He added that many traders previously left refrigerators running overnight to preserve goods but abandoned the practice after incidents of electrical fires raised safety concerns.
Hairdresser Fatima Abdul said unreliable electricity and rising bills have forced her business to rely heavily on petrol generators.
She lamented that despite paying monthly electricity bills, supply remains inconsistent, accusing the government of sending conflicting messages on energy policies while failing to consult citizens on decisions that directly affect their livelihoods.
IMF’s Earlier Recommendation Resurfaces
The renewed debate follows the International Monetary Fund’s (IMF) recommendation in February 2024 that Nigeria gradually phase out electricity subsidies to ease pressure on public finances.
With households and businesses already grappling with rising living costs, the latest controversy has intensified concerns over how the government intends to balance economic reforms with the need to provide affordable and reliable electricity.
For many Nigerians, the key question remains whether electricity will become both more reliable and affordable, regardless of future subsidy policies.