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FG Plans 2027 Electricity Subsidy Phase-Out, Targets Power Sector Debt
FG Plans 2027 Electricity Subsidy Phase-Out, Targets Power Sector Debt
The Federal Government plans to begin phasing out electricity subsidies from 2027 as part of a wider effort to restore financial stability to Nigeria’s power sector, improve electricity supply and prevent the accumulation of fresh liabilities.
Minister of Power Joseph Tegbe disclosed the plan while outlining the government’s reform agenda, saying the administration of President Bola Ahmed Tinubu was working to clear legacy obligations in the electricity market and establish a more sustainable funding structure.
Tegbe said the planned withdrawal of the subsidy should not be interpreted as an immediate increase in electricity tariffs.
The minister has repeatedly stated that there is currently no government policy to increase electricity tariffs beyond their existing levels, stressing that the immediate priority is to improve service, expand access and ensure consumers pay for electricity actually supplied to them.
He also said the government was developing measures to protect vulnerable electricity consumers as the reform progresses.
The planned subsidy phase-out comes against the background of a major financial crisis in the Nigerian Electricity Supply Industry (NESI). The government has had to cover part of the difference between the cost of supplying electricity and the amount recovered through tariffs, while unpaid obligations have accumulated across the electricity value chain.
Recent figures cited by industry reports indicate that the Federal Government covered about ₦358.32 billion of electricity generation costs in the first quarter of 2026 alone.
Between April 2025 and April 2026, distribution companies reportedly issued electricity invoices worth about ₦3.16 trillion, with the government expected to cover about ₦1.86 trillion as subsidy for customers whose tariffs remained below cost-reflective levels.
The burden has added to the financial pressures facing generation companies, gas suppliers and other participants in the electricity market, limiting their ability to maintain equipment, settle obligations and invest in additional capacity.
The government has therefore made power-sector debt reduction a central part of its reform programme.
President Tinubu approved a plan to settle about ₦3.3 trillion in verified legacy electricity-sector debts accumulated between February 2015 and March 2025.
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To support the programme, the Federal Government established a ₦4 trillion Power Sector Multi-Instrument Issuance Programme.
The government has so far raised hundreds of billions of naira through the initiative. The second series, valued at approximately ₦728.9 billion, was completed in September, bringing total funds raised under the programme to more than ₦1.1 trillion, according to government officials.
The second issuance comprised about ₦402 billion in cash bonds and ₦326.98 billion in non-cash bonds allocated to participating generation companies. Eleven GenCos took part in the second series, compared with eight in the first.
The debt settlement is intended to restore liquidity to the electricity market and improve the financial position of generation companies, which in turn should help them meet obligations to gas suppliers and invest in maintaining and expanding their plants.
The Federal Government has said resolving the historical debt problem is necessary if the electricity market is to become commercially sustainable and attract new private investment.
The subsidy reform is being pursued alongside measures aimed at improving the physical infrastructure needed to deliver electricity.
The Federal Ministry of Power has identified weaknesses in the national transmission network as one of the major constraints to reliable electricity supply and has established a Technical Working Committee on Grid Stabilisation.
The committee is expected to work with the Transmission Company of Nigeria and the Nigerian Independent System Operator to address transmission bottlenecks, ageing infrastructure and recurring system collapses.
The government’s plans include strengthening critical transmission corridors, expanding grid redundancy and modernising control and monitoring systems.
Tegbe has also outlined plans to improve metering, tackle electricity theft and reduce technical and commercial losses across the power value chain.
The government has linked the reforms to its wider objective of ensuring that consumers are billed more accurately and that electricity companies can recover the revenue required to maintain their operations.
The minister has also reported improvements in generation and electricity availability in some areas, but stressed that generation alone cannot resolve Nigeria’s power problems.
For electricity to reach consumers consistently, power must be generated, transmitted, distributed and properly paid for. Weaknesses in any part of that chain can undermine improvements elsewhere.
The government is therefore pursuing reforms across generation, transmission, distribution and metering, rather than relying solely on additional generation capacity.
The planned 2027 electricity subsidy phase-out will be a major test of those reforms. Government support has helped keep tariffs below the cost of supplying electricity for some categories of consumers, but the resulting financial burden has contributed to recurring liabilities in the sector.
The challenge for the government will be to reduce that burden without worsening the difficulties faced by households and businesses, particularly low-income consumers.
Tegbe has said vulnerable Nigerians will be protected and that the subsidy transition will be accompanied by efforts to improve electricity services.
For now, the Federal Government is combining the planned subsidy reform with debt settlement, grid investment, metering and measures to improve the commercial operation of the electricity market.
The success of the policy will ultimately depend on whether the government can translate those measures into more reliable electricity, improved service delivery and a financially sustainable power sector while limiting the impact of the transition on vulnerable consumers.
FG Plans 2027 Electricity Subsidy Phase-Out, Targets Power Sector Debt
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News
President Tinubu Mourns 32 NAF Personnel in Ondo Jet Crash, Orders Immediate Probe
President Tinubu Mourns 32 NAF Personnel in Ondo Jet Crash, Orders Immediate Probe
President Bola Ahmed Tinubu has expressed profound grief over the crash of a Nigerian Air Force ATR-42 aircraft near a naval base in the Igbokoda area of Ondo State, which claimed the lives of all 32 personnel on board.
The tragic incident occurred on Monday morning when the aircraft, on a routine mission from Benin to Lagos, went down shortly before reaching its destination. The victims include 25 passengers and seven crew members.
In a statement released by his Special Adviser on Information and Strategy, Bayo Onanuga, the President described the incident as “a painful moment for our Armed Forces and for the entire nation.”
“Our Air Force personnel put their lives on the line every day to secure Nigeria. Their sacrifice will never be forgotten,” Tinubu said.
The President extended his deepest condolences to the families of the deceased, the Chief of the Air Staff, Air Marshal Sunday Kelvin Aneke, and the entire Nigerian Air Force community.
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President Tinubu revealed that he had received a briefing from the Chief of Air Staff and has directed an immediate and thorough investigation into the cause of the crash to prevent future occurrences.
“I have directed the Nigerian Air Force to immediately commence a thorough investigation into the cause of the crash to prevent future occurrences,” he stated.
The President commended the Nigerian Air Force for activating an immediate Search and Rescue operation following the accident, as well as the swift response of first responders and the Ondo State Government at the crash site.
“I pray for the repose of the souls of the gallant officers and for Almighty God to grant their families and the Nigerian Air Force the fortitude to bear the unfortunate loss,” Tinubu said.
He further assured the Nigerian Air Force of the continued support of his administration as they continue their vital role in securing the nation.
The crash marks one of the deadliest air disasters involving Nigerian military personnel in recent years, casting a shadow over the nation’s security apparatus. The Nigerian Air Force is expected to release further details as the investigation gets underway.
President Tinubu Mourns 32 NAF Personnel in Ondo Jet Crash, Orders Immediate Probe
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BREAKING: Many Feared Dead as Helicopter Crashes in Ondo Community
BREAKING: Many Feared Dead as Helicopter Crashes in Ondo Community
Several people are feared dead after a helicopter crashed in Igbokoda, headquarters of Ilaje Local Government Area of Ondo State, on Monday.
The incident occurred in the riverine community, triggering panic among residents as efforts began to establish the circumstances surrounding the crash and the fate of those on board.
Early reports indicate that the aircraft came down in a swampy area opposite a naval base in Igbokoda. The helicopter was reportedly badly damaged, with one local official saying military equipment was found at the scene.
The Chairman of Ilaje Local Government Area, Maurice Oripelaye, confirmed the crash when contacted by journalists but said the number of people aboard the aircraft could not immediately be established.
He reportedly said the helicopter had been burnt extensively, making it difficult to determine the number of occupants or confirm their identities.
The circumstances surrounding the crash remained unclear as of Monday afternoon. It was also not immediately established whether the aircraft was operated by the military, a private company or another organisation.
Some reports described the aircraft as a suspected military helicopter, based on the military equipment reportedly recovered from the crash site. However, authorities had not officially confirmed the identity or operator of the aircraft.
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The Ondo State Police Command also had not immediately confirmed the incident. Police spokesperson Abayomi Jimoh was reported to have said he was unaware of the crash when contacted and would make inquiries.
Reports from the community indicated that residents moved towards the crash area following news of the incident, while efforts were reportedly underway to assess the wreckage and establish whether there were survivors.
The number of people on board remains unknown, and no official casualty figure had been released at the time of filing this report.
The crash occurred in Ilaje, one of Ondo State’s major riverine and oil-producing areas. Igbokoda serves as the headquarters of the local government and is surrounded by waterways and swampy terrain.
The location is also used for logistics and transportation activities connected to the coastal and oil and gas industry, where helicopters are sometimes deployed to transport personnel and equipment.
The reported crash has renewed attention on the safety challenges associated with helicopter operations in Nigeria’s coastal areas, although the cause of Monday’s incident remains unknown.
Authorities are expected to establish the identity of the aircraft, its operator, flight route, number of occupants and the circumstances that led to the crash.
The Nigerian Safety Investigation Bureau (NSIB) is responsible for investigating aviation accidents and incidents within its jurisdiction, and further official information is expected as authorities assess the crash site.
For now, residents and families awaiting information about possible occupants are left without confirmed casualty figures or details of those involved.
Further updates are expected from the relevant security, aviation and emergency-response authorities as the investigation and recovery efforts continue.
BREAKING: Many Feared Dead as Helicopter Crashes in Ondo Community
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Supreme Court Ruling: INEC Moves to Clarify Fate of 2027 Candidates
Supreme Court Ruling: INEC Moves to Clarify Fate of 2027 Candidates
The Independent National Electoral Commission (INEC) has said it will determine how the recent Supreme Court ruling on the Electoral Act 2026 affects candidates after reviewing the certified true copy of the judgment.
The development has heightened uncertainty among some political parties and 2027 election candidates, particularly those whose nominations could be scrutinised over party membership registers and the procedures used to conduct their primaries.
The Supreme Court, in its September 24 judgment, restored Sections 77(5), 77(6), 77(7) and 84(2) of the Electoral Act 2026, which had earlier been struck down by the Court of Appeal. The provisions deal principally with political party membership registers and candidate nomination procedures.
Under Section 77(5), only members whose names appear on a party’s membership register submitted to INEC at least 21 days before a primary, congress or convention are eligible to participate in the exercise.
Section 77(6) requires parties to use the membership register submitted to INEC for their primaries, congresses and conventions, while Section 77(7) provides consequences for a party that fails to submit its register within the prescribed period.
Section 84(2), meanwhile, provides for the nomination of candidates through direct primaries or consensus.
The Supreme Court’s decision did not name or automatically disqualify any individual candidate. Questions surrounding particular nominations are expected to depend on the facts of each case, including party membership records, the timing of registration or defection and how the relevant primary was conducted.
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INEC has therefore refrained from announcing a blanket decision on candidates whose nominations could be affected.
The commission is expected to engage political parties and other stakeholders on October 6, while also addressing the issue publicly as preparations continue for the 2027 general elections. INEC is also expected to publish the final list of governorship and State House of Assembly candidates on October 10.
Several candidates have already attracted attention because of circumstances surrounding their party membership or nomination.
Among those mentioned are Kingsley Chinda, the APC governorship candidate in Rivers State; Isa Pantami, the PDP governorship candidate in Gombe State; Donald Duke, the PRP presidential candidate; Ovie Omo-Agege, the NDC senatorial candidate in Delta Central; and Victor Ochei, the NDC candidate for Delta North.
In Chinda’s case, questions have centred on the timing of his movement from the PDP to the APC and whether his membership status complied with the restored provisions before the party’s governorship primary.
The Rivers APC has maintained that Chinda registered with the party on April 27, ahead of the May 21 primary, and therefore met the relevant 21-day requirement.
Pantami’s case is also subject to separate legal proceedings. He left the APC for the PDP after withdrawing from the APC governorship primary and subsequently emerged as the PDP’s candidate in Gombe. A Federal High Court ruling in Gombe had already nullified his nomination and ordered a fresh primary, meaning his situation involves issues beyond the Supreme Court judgment alone.
For Omo-Agege and Ochei, attention has focused on their movement from the APC to the NDC and the waivers granted to enable them to contest the NDC nomination exercises. Their cases raise questions about the interaction between party membership, waivers and the restored provisions of the Electoral Act.
Former Inspector-General of Police Mohammed Abubakar Adamu, the SDP governorship candidate in Nasarawa State, has also insisted that his candidacy remains valid. The SDP has said he had been a member of the party for about three months before its governorship primary.
The key issue for INEC is whether nominations conducted while the disputed provisions were temporarily invalidated will be assessed under the provisions subsequently restored by the Supreme Court.
For now, the Supreme Court judgment should not be interpreted as an automatic cancellation of the affected candidates’ tickets.
The final position will depend on INEC’s review of the judgment, the relevant party records and the specific circumstances surrounding each nomination, as well as any separate court proceedings that may arise.
With the 2027 elections approaching, the commission’s forthcoming clarification is expected to provide greater certainty for political parties, candidates and other stakeholders over the status of nominations affected by the ruling.
Supreme Court Ruling: INEC Moves to Clarify Fate of 2027 Candidates
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