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

The clarification came after comments attributed to the Minister of Power, Joseph Tegbe, on proposed reforms aimed at addressing long-standing distortions in the electricity sector and improving its financial sustainability.

However, the government later distanced itself from claims that it had approved an immediate subsidy removal or tariff increase.

The minister subsequently explained that no policy decision had been taken to increase electricity tariffs or end subsidies at this time. He stated that the government's current priorities are improving electricity supply, expanding metering, strengthening transmission infrastructure, and stabilising the national grid.

Despite the clarification, the development has triggered fresh discussions among political analysts, electricity experts, and consumers, with many questioning what they described as recurring policy reversals by the government.

Subsidy Debate May Be Politically Motivated — Prof. Fagge

Professor Kamilu Sani Fagge, a political scientist at Bayero University Kano, believes the government's decision to step back from the subsidy discussion may be influenced by political considerations.

Speaking with DAILY POST, Fagge said the issue may resurface after the election cycle.

"This withdrawal of the subsidy discussion is simply political. After the election, you may hear about it again," he 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 also argued that citizens have greater influence over government policies than many realise.

"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."

Experts Say Higher Tariffs Won't Automatically Improve Electricity

Some electricity experts have also questioned the assumption that removing subsidies would automatically lead to better power supply.

They pointed to Nigeria's experience following the removal of petrol subsidy, arguing that higher prices alone do not necessarily result in improved service delivery.

Electrical engineer Jaafar Sulaiman told DAILY POST that increasing electricity costs without resolving the sector's structural challenges would only place additional financial pressure on consumers.

"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," he said.

According to Sulaiman, reliable electricity depends on improvements across the entire value chain—from generation to transmission and distribution—not simply on increased funding.

"Electricity is like blood in the human body; once it is generated, it has to be transmitted and used efficiently," he explained.

While acknowledging that financing remains an essential aspect of power sector reform, he stressed that funding alone cannot solve the industry's long-standing problems.

He also noted that some experts continue to question how electricity subsidies are calculated and implemented, particularly as tariffs have risen in recent years.

Kano Business Owners Say Reliable Supply Matters More

For many small business owners in Kano, the debate over subsidies is less important than the struggle to obtain stable electricity.

Sa'idu Bala Mainkanti, who sells cold drinks and other refrigerated products in Naibawa, said electricity often arrives only after businesses have closed for the day.

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

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

Mainkanti explained that some traders previously left refrigerators running overnight to keep products cold, but many abandoned the practice after a fire reportedly caused by electricity destroyed a shop.

'We Have Given Up on Public Electricity'

Fatima Abdul, a hairdresser in Tudun Yola, Kano, said unreliable electricity and rising bills have forced her to depend 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 said.

According to her, businesses continue to receive monthly electricity bills of ₦10,000 or more despite not enjoying anything close to uninterrupted power supply.

She also criticised what she described as inconsistent communication from government officials on key policy issues.

"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. If the lives and well-being of Nigerians truly matter, the government should consult citizens before introducing policies that affect them."

IMF Previously Recommended Subsidy Removal

The latest debate comes against the backdrop of earlier recommendations by the International Monetary Fund (IMF).

In February 2024, the IMF advised the administration of President Bola Ahmed Tinubu to gradually phase out electricity subsidies as part of broader fiscal reforms aimed at easing pressure on public finances.

With many Nigerians already facing rising living costs and increasing business expenses, the controversy has renewed concerns over how the government intends to balance financial sustainability with the need to provide affordable and reliable electricity.

For business owners like Mainkanti and Fatima, however, the key issue remains unchanged: access to consistent electricity at a price they can afford.