The Federal Government has announced plans to begin phasing out subsidy payments in the power sector from 2027 as part of efforts to address mounting debts in the electricity industry.

The Minister of Power, Joseph Tegbe, disclosed this on Friday during a media interactive session while addressing concerns over the sector's financial obligations.

Tegbe said the subsidy removal would be implemented gradually, assuring Nigerians that the process would not deny consumers the benefits currently enjoyed under the government's support programme.

He also dismissed speculation about an imminent increase in electricity tariffs, stressing that there are no immediate plans to review tariffs upward.

The minister said the gradual withdrawal of subsidies forms part of broader reforms aimed at improving the financial sustainability of the power sector while protecting consumers from sudden shocks.