Friday, February 23, 2024

Experts caution FG against removing electricity subsidy amid economic hardship

“The people are already grappling with too many economic distortions.’’

• February 13, 2024
Adebayo Adelabu
Adebayo Adelabu

Some financial experts have advised the Federal Government not to remove the electricity subsidy, saying such an act can lead to tough economic conditions.

They said this in separate interviews with journalists on Tuesday in Lagos.

Prof. Bright Eregha, Lecturer of Economics at the Pan-Atlantic University, advised the government not to contemplate the removal of the subsidy because of the current economic hardship.

“The people are already grappling with too many economic distortions, which have led to the cost of living in the country. Then removing the subsidy on electricity will raise the inflation rate and worsen the people’s economic plight, ‘’ Mr Eregha said.

He said that the government should focus more on improving the challenges of the energy sector than proposing the removal of subsidies.

He added that the Federal Government should be honest and dialogue with the people to assuage doubt, particularly during this period of economic austerity.

“This will reduce the distrust in government policies and enable the people to key into their programmes, ‘’Mr Eregha said.

Also speaking, President of the Standard Shareholders Association of Nigeria, Godwin Anono, said the policy to remove the electricity subsidy was not properly taught out.

“The policy will not achieve its desired objectives because the country’s power situation has yet to be improved upon. We barely have steady electricity, and the authorities are clamouring for subsidy removal in the country,’’ Mr Anono said.

He noted that the government should be more concerned with providing pre-paid metres to prospective electricity consumers before implementing a new tariff regime.

“Implementing the proposed policy without addressing the metering challenges will be exploiting the people without any regulatory protection, which isn’t the right thing to do in this era of economic difficulties,” Mr Anono said.

The minister of power, Adebayo Adelabu, had said that the removal was initiated for effective energy administration.


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