Financial experts have advised the Nigerian Government against removing electricity subsidies, warning that such a move could exacerbate severe economic hardships in the country.
Prof. Bright Eregha, an Economics lecturer at Pan-Atlantic University, in an interview with newsmen in Lagos.on Tuesday, urged the government to reconsider the removal of the subsidy in light of the ongoing economic challenges.
Media reports quoted Eregha emphasizing that the populace is already grappling with numerous economic distortions, resulting in soaring living costs.
Energy Afrique had earlier reported that the International Monetary Fund (IMF) had recommended that the Nigerian Government to completely end electricity subsidies in Nigeria.
IMF stated that the federal government had overburdened itself, suggesting that the complete removal of both fuel and electricity subsidies should be carried out.
However, Eregha argued that removing the electricity subsidy would further escalate inflation rates and exacerbate economic hardships for the people.
He suggested that rather than contemplating subsidy removal, the government should prioritize addressing the energy sector’s challenges.
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He stressed the importance of transparent dialogue with the public to alleviate doubts, especially during times of economic austerity, thus fostering trust in government policies.
Similarly, Mr. Godwin Anono, President of the Standard Shareholders Association of Nigeria, criticized the government’s lack of comprehensive planning regarding the electricity subsidy removal policy.
Anono expressed scepticism regarding the policy’s effectiveness, citing the nation’s persistently unreliable power supply.
He advocated for a focus on providing prepaid meters to prospective electricity consumers before implementing any tariff adjustments.
Anono cautioned against exploiting the populace without adequate regulatory safeguards, particularly amidst economic difficulties.
The Minister of Power, Adebayo Adelabu, had previously stated that the subsidy removal aims to streamline energy administration for greater effectiveness.
