Sunday Makinde, a former chairman of the Nigerian Institute of Electrical and Electronic Engineers (NIEEE), has commended the federal government for the electricity reforms but urged it to reconsider plans to remove electricity subsidy starting in 2027.

Mr Makinde, on Monday in Lagos, said the reforms had opened up the electricity market to states and could help improve power supply if properly implemented.

The Electricity Act 2023 allows states to issue licences, set regional tariffs and establish independent electricity markets.

Mr Makinde said the immediate past administration made a significant breakthrough by moving electricity from the exclusive to the concurrent legislative list through the Electricity Act 2023.

“The present administration has been building on that by devolving more power to the states, as more states are becoming legislatively and financially empowered to function better in providing this essential utility.

“At present, 15 states of the federation run their own electricity markets,” he said.

The former NIEEE chairman said the reforms had affected virtually every aspect of the power sector, expressing hope that they would ultimately translate into more reliable electricity supply.

He also commended the removal of the fuel subsidy, saying the economic reforms were gradually improving the country’s fiscal position.

“This government has pulled the chestnut out of the fire by removing fuel subsidy. It was very much required, though it may not be desired or satisfactory,” he said.

Mr Makinde, however, said the reforms had imposed significant hardship on Nigerians, particularly through rising energy costs.

He urged the federal government to reconsider the planned removal of electricity subsidy in 2027, warning that another increase in energy costs could worsen the living conditions of Nigerians.

“The government really needs to look critically at the situation and consider the people more, so as not to be seen as implementing and enforcing another anti-people policy.

“Energy costs have been increased three times in the recent past. There is absolutely no reason for yet another hike in electricity tariffs.

“To moot the idea of removing electricity subsidy completely at this very juncture is another decision that would definitely worsen the condition of the masses,” he said.

Mr Makinde said Nigerians were still adjusting to the impact of fuel subsidy removal and needed relief rather than additional energy-cost pressures.

He called for a balanced approach that would sustain sector reforms while protecting vulnerable households and businesses from further increases in electricity costs. 

(NAN)