[OPINION BY KEEM ABDUL] New electricity tariff: Tinubu’s socioeconomic game changer | TheCable
BY KEEM ABDUL
One thing is sure though, with a monthly subsidy of about N50 billion still in the electricity sector owing to revenue shortfalls, the tariff hike will be another acid test for the administration’s market reforms. Of course, as with the removal of fuel subsidy and the naira floatation policy, the expected socio-economic impact on ordinary Nigerians, households, and on the cost of doing business – especially on the part of manufacturing companies and others – has been well articulated by various stakeholders, who not only lament the worsening conditions that will inevitably result from this policy but also point out that even the electricity that is being paid for is largely unavailable, and at best...
Other recommendations as to how the Tinubu-led federal government should approach this policy have been proffered. They include: Expedite the supply of prepaid meters. It is bad enough to pay for electricity not consumed, even when the tariff is low but it is worse when the tariff is increased substantially. The most reasonable estimate of the electricity consumed is from the meter. Even a faulty meter, as someone has said, is more reliable than the judgment of a DisCo official sitting in his office.
The Tinubu administration should commit that government ministries, departments and agencies will not be among the defaulting customers because even the size of collection losses can be a disincentive to investors. It is better to promptly pay the bills of its agencies and reduce collection losses on the front end than to subsidise the industry on the back end.
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