Nigeria: Civil Society Groups Oppose 40% Electricity Tariff Hike in Nigeria'

22 June 2023

Nigerian civil society groups have expressed outrage over a proposed 40% increase in electricity tariffs, warning of the potential negative impact on the economy, education, and the environment.

The tariff hike, set to take effect on July 1, is expected to end all forms of energy subsidy in the country.

In an interview with Vanguard in Abuja, Mrs. Felicia Onibon, Founder of Change Managers International Network Nigeria, criticized the proposed 40% increase in electricity tariff, stating that it is unfair and has negative implications for various aspects of the economy.

She argued, "It would lead to increased overhead costs for all businesses in the country, create hardship for young people who rely on cheap and affordable electricity for studying at night or early hours of the day, and harm the environment by forcing families to resort to other forms of energy that can negatively impact the ecosystem."

Similarly, Princess Hamman-Obels, Director of the Initiative for Research, Innovation and Advocacy in Development (IRIAD), echoed Onibon's sentiments, calling the proposed hike "anti-people, anti-poor and most insensitive to the Nigerian people."

Hamman-Obels criticized the current administration for introducing harsh policies without consulting the public, stressing the importance of timing in policy implementation to allow for adjustment and adaptation.

Deji Adeyanju, the Convener of Concerned Nigerians for the Protection of Human Rights and the Rule of Law Initiative, also slammed the proposed increase as "unjustifiable and unfair."

Adeyanju pointed out that under previous governments, Nigerians paid significantly less for energy, and argued that the current administration is out of touch with the realities faced by the people.

"All over the world, even in advanced countries, the government subsidizes energy because of its pivotal role in driving the economy, supporting education and health sectors, and general improving the well-being of the citizens. Why is Nigeria's case different?" Adeyanju questioned.

The tariff hike, which comes amid a monthly subsidy of about N50 billion in the electricity sector due to revenue shortfall, is set to challenge the President Bola Ahmed Tinubu administration's market reform efforts.

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