IN Nigeria, many policies that are supposed to catalyse economic growth end up making things worse and complicate matters for the citizens for whom these policies are designed to enhance their quality of life. Recently, two significant policies typify this: The
The most recent 231 per cent hike in the price of electricity units for Band A customers is another presumed good policy that might have an unintended adverse impact on the citizens. The main argument for a cost reflective tariff must be distinct from that of subsidy removal, especially when the economics of the subsidy is yet to be proven, and the utilisation transition mechanism is not established or communicated.
However, I support the appropriate electricity pricing because it is critical for ensuring the sustainability, reliability, and affordability of electricity supply in Nigeria and promoting investment, innovation, and economic growth in the energy sector and beyond. Appropriate pricing ensures that utilities can generate sufficient revenue to invest in the maintenance, upgrade, and expansion of electricity infrastructure to enhance the reliability and quality of electricity supply.