The Federal Government says it plans to phase out subsidy payments in the electricity sector from 2027.

Minister of Power, Joseph Tegbe, who disclosed the plan during a media interactive session on Friday, said the development was to address the mounting debts and liabilities in the power sector.

However, Tegbe assured Nigerians that the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime, adding that there were no plans for a tariff hike in the short term.

He explained that the planned removal is part of broader reforms to ensure the long-term sustainability of the electricity sector while tackling the financial challenges confronting the industry.