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The Federal Government has stated that it has no immediate intention to remove electricity subsidies or raise electricity tariffs, following reports suggesting that subsidies in the power sector could be phased out from 2027.

The clarification came after remarks credited to the Minister of Power, Joseph Tegbe, who reportedly discussed plans to address what the government described as structural distortions in the electricity sector as part of broader reforms aimed at ensuring long-term financial sustainability.

However, the Federal Government later distanced itself from claims that it had approved an immediate removal of subsidies or an increase in electricity tariffs.

The minister subsequently explained that there is currently no official policy to increase tariffs or abolish electricity subsidies, emphasizing that the government’s immediate focus is on improving electricity supply, expanding metering, strengthening the transmission network and stabilising the national grid.

Despite the clarification, the issue has sparked widespread debate among political analysts, energy experts and electricity consumers, with many questioning what they described as repeated policy reversals by the government.

It’s a political calculation – Prof Fagge

Professor Kamilu Sani Fagge, a political scientist at the University of Kano, told ZINGTIE that the government’s decision to retreat from discussions about subsidy removal may have been driven by political considerations.

“This withdrawal of the subsidy discussion is simply political. After the election, you may hear about it again,” Fagge said.

“The burden has become too much for ordinary Nigerians, and maybe that is why the government has decided to hold back for now. But I do not believe the proposal has disappeared permanently.”

Fagge argued that Nigerians possess the power to influence government decisions but often fail to use that influence effectively.

“People have the power to take action against policies introduced by their leaders, but many do not realise it,” he said.

“If a politician knows that remaining in office depends on how satisfied the people are with his performance, he will certainly be more careful. When you see democracy working effectively, it is because the people themselves have stood firm,” said the professor.

Meanwhile, some experts in the electricity industry insist that ending subsidies alone will not automatically improve power supply.

They pointed to Nigeria’s experience after the removal of petrol subsidy, arguing that increased prices do not necessarily result in better product availability or improved service delivery.

Electrical engineer, Engr Jaafar Sulaiman, told ZINGTIE that scrapping electricity subsidies without addressing the sector’s underlying challenges would only leave consumers paying higher bills.

“Even if the subsidy is removed, it does not mean Nigerians will automatically get more electricity. What will certainly happen is that the cost of electricity will increase.

“Improving electricity supply depends on addressing several important issues. Electricity is like blood in the human body; once it is generated, it has to be transmitted and used efficiently,” Sulaiman said.

According to him, although funding plays an important role in reforming the electricity sector, financial investment alone cannot resolve its numerous challenges.

“Finance is an important part of providing electricity, but it is not the only factor,” he said.

“On the issue of electricity subsidy itself, some experts even question how it is calculated and applied. The subsidy debate became more prominent as electricity tariffs increased.”

Kano businesses lament unreliable electricity

For many small-scale business owners in Kano, however, the subsidy debate is less important than the daily struggle to access reliable electricity.

Sa’idu Bala Mainkanti, who operates a cold drinks and frozen products business in Naibawa, Kano State, told ZINGTIE that electricity is often supplied only after business hours.

“Sometimes electricity comes around midnight or 1 a.m., when we have already closed our shops and gone home,” Bala said.

“For those of us whose businesses operate during the daytime, what benefit does that electricity provide?”

He explained that some traders previously left their refrigerators switched on overnight so their products would remain chilled until morning, but many abandoned the practice due to fears of electrical fires.

“There are traders I know who used to leave their electricity switched on, lock their shops, and go home. By morning, their refrigerators would be very cold, sometimes even producing ice.

“But people became afraid after electricity caused a fire at a shop during the night, and everything inside was completely burnt.”

We have abandoned electricity – Hairdresser

Fatima Abdul, who owns a hairdressing salon in Tudun Yola, Kano, said poor electricity supply and increasing bills had forced her to rely almost entirely on a petrol-powered generator.

“We have practically given up on electricity because it is expensive and still does not meet our needs,” she told ZINGTIE.

“We now depend on a generator. At the end of the month, they may bring us a bill of ₦10,000 or even more, yet we do not receive anything close to 24-hour electricity.

“When it comes to this government, you hardly know whom to hold accountable. Today, one thing is said, and tomorrow, someone else comes out to say something different, and they are all part of the same government. There is constant back-and-forth,” she said.

“We, the ordinary people, have become mere spectators. It seems we are only useful during elections; once the elections are over, we are left to deal with whatever comes our way. But if the lives and well-being of every Nigerian were truly taken seriously, the government should seek our views and involve us before making any policy that will affect our lives,” Fatima complained.

IMF had earlier recommended subsidy removal

The renewed discussion comes against the backdrop of earlier recommendations by the International Monetary Fund, IMF, regarding Nigeria’s electricity subsidy regime.

In February 2024, the IMF advised the administration of President Bola Ahmed Tinubu to gradually remove electricity subsidies as part of measures aimed at easing pressure on public finances.

The recommendation formed part of broader concerns over Nigeria’s fiscal position and the growing cost of sustaining government subsidies.

However, with Nigerians already facing rising living expenses and business costs, the latest debate has revived concerns over how the government intends to balance economic reforms with affordable and dependable electricity supply.

For business owners like Mainkanti and Fatima, the priority remains simple: whether they can access enough electricity to keep their businesses running and whether the cost will remain within their reach.

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