The Federal Government’s proposed 40% electricity tariff hike has drawn strong reactions from various stakeholders, including Transparency International, Amnesty International, CISLAC, Coalition of Northern Groups (CNG), and development expert Kolawole Banwo.
In an interview with Vanguard, the Chair Board of Trustees Amnesty International (Nigeria) and Head of Transparency International (Nigeria), who also serves as the Executive Director of Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, urged the government to reconsider its decision. Musa stated, “The current administration must understand that it is only when Nigerians are alive and productive that they can contribute to the economy and overall development of the nation.” The organizations further emphasized the need for subsidies in critical sectors such as agriculture, transportation, energy, housing, education, and health to make life more bearable for the average Nigerian. They called for measures to be put in place to mitigate the impact on the country’s citizens and businesses. Also, the Coalition of Northern Groups (CNG), expressed similar concerns, noting that any increase in utility costs would be detrimental to the majority of the population.
Suleiman Abdul-Azeez, the spokesman of CNG, said: “If there must be any form of adjustment in electricity tariff, there must as well be commensurate provisions for a first, adequate and sufficient supply of the commodity.” He also called for a guarantee of a non-stop power supply before implementing any tariff increases. Development expert Kolawole Banwo pointed out two challenges associated with the proposed 40% increase in electricity tariffs. He said, “Firstly, the electricity is not available. Many people are paying for darkness in spite of previous hikes which defeats the argument that the hikes were to fix the issues inhibiting the electricity supply value chain.” Banwo also highlighted the potential negative impact on small and medium-scale enterprises, which constitute a significant portion of Nigeria’s economy and workforce. He warned that the increased cost of electricity could threaten their survival and lead to a rise in crime rates.