•Ibrahim Olesin
A chieftain of the All Progressives Congress (APC) in Kwara State, Ambassador (Dr.) Ibrahim Tajudeen Olesin, has expressed concern that the planned removal of electricity subsidy is likely to compound the suffering among Nigeria’s poor masses and may lead to chaos in the country.
It will be recalled that the International Monetary Fund (IMF), in its report entitled ‘IMF Executive Board Concludes Post Financing Assessment with Nigeria,’ reiterated the importance of eliminating subsidies to redirect resources towards more targeted and impactful social welfare programs, reports Nigerian Tribune.
In an open letter to President Bola Ahmed Tinubu, in Ilorin today, Olesin urged the federal government to reject the advice from some quarters, including the IMF, on the removal of electricity subsidy.
The APC chieftain advised the president, stating that, “Removing subsidies on electricity will place an unbearable burden on the already strained finances of ordinary Nigerians.”
The letter further reads:
In a country where a significant portion of the population lives below the poverty line, any increase in utility costs will directly impact the ability of families to afford basic necessities.
With stagnant wages and rising inflation, the prospect of higher electricity bills is simply untenable for millions of households. Moreover, the timing of such a proposal couldn’t be worse.
Nigeria is already grappling with a myriad of economic challenges, including high unemployment rates, sluggish growth, and a depreciating currency.
The removal of electricity subsidies would only serve to exacerbate these issues, further eroding purchasing power and deepening the economic hardship faced by the average citizen.
Furthermore, the removal of subsidies on electricity is likely to ignite widespread social unrest and civil disobedience.
Nigerians are already frustrated and disillusioned with the government’s inability to provide essential services, and any further austerity measures are likely to push them to the breaking point.
If the government has learned anything from the unpopular and unrealistic policy of subsidy removals, it is that no good comes out of a population burdened by the weight of creating an enabling environment for their lives to make any sense.
Recently, Nigerians took to the streets in Minna and Kano States, not to cheer the government over its magnificent handling of the economy but to sing one song: WE ARE HUNGRY. Hunger is not a good mix on the menu for a people whose very existence revolves around electricity and petrol.
The Sultan of Sokoto puts it mildly when he says the nation is sitting on a keg of gunpowder. Remove the subsidy on electricity, and kaboom, that already brewing resentment towards this administration blows up.
In addition to the social implications, the removal of electricity subsidies threatens to undermine the competitiveness of Nigerian businesses.
Many industries rely heavily on affordable electricity to power their operations, and any increase in energy costs would eat into their profit margins and hinder their ability to compete both domestically and internationally. This could have ripple effects throughout the economy, leading to job losses, business closures, and a further slowdown in economic growth.
It is time this administration ensures that those who divert funds meant for infrastructure development and modernization projects face the full wrath of the law.
There must be transparency and accountability in the allocation of resources; otherwise, we will continue to undermine efforts to reform the sector.
CBN Governor Yemi Cardoso just revealed to the nation a few days back that a forensic audit exposed a whopping $2.4 billion false overdue forex claim by some unscrupulous Nigerians. The information is out there in the open, but the action needed to punish those using this means to shortchange the nation is yet to be seen.
There are people in the ilk of these elements who continue to milk the nation dry in all sectors, including the power sector. Not a single one of them has been brought to justice; rather, the government believes the people need to be denied subsidy.
Regarding the tariff structures and revenue collection, it is a well-known fact that despite substantial subsidies, many electricity consumers still struggle to afford the cost of electricity. This, in itself, is responsible for the widespread non-payment experienced, which cripples the finances of distribution companies.
We must address this instead of going the easy route of removing subsidies. Finally, to break free from this cycle of dependency and dysfunction, Nigeria must pursue comprehensive reforms aimed at addressing the structural deficiencies and systemic barriers that continue to impede progress in the power sector.
This includes strengthening regulatory oversight, promoting private sector participation, and incentivizing investment in renewable energy technologies.
Additionally, there is a need for greater transparency and accountability in the management of public resources, with stringent measures in place to curb corruption and ensure that funds earmarked for the power sector are utilized effectively and efficiently.
Ultimately, resolving Nigeria’s electricity crisis requires a concerted effort from all stakeholders, including government, industry players, civil society organizations, and the international community.
Only through sustained commitment, collective action, and visionary leadership can Nigeria hope to illuminate the path towards a brighter, more prosperous future for all its citizens.
Until then, the specter of power shortages will continue to cast a long shadow over the nation’s aspirations for progress and development.
