- Financial analysts back electricity subsidy removal
- Call for the diversification of energy sources
Financial analysts have backed the removal of electricity subsidy by the Federal Government following the revelation that the Federal Government paid ₦20 billion less in subsidy payments in the past months compared to the ₦50 billion monthly payments earlier in the year. According to the analysts, the removal of electricity subsidies would save help reduce the Federal Government’s expenditures given the current economic realities.
Former Executive Secretary Chartered Institute of Bankers of Nigeria (CIBN), Dr Uju Ogubunka, argued in favour of subsidy removal, saying, ”Removal of electricity subsidy will breed competition and reduce inefficiency in the system. The regulator should be concerned with managing tariffs abuse”. He urged the government to intensify metering efforts in the country.
Mr Titus Okurounmu, a former Director, Central Bank of Nigeria (CBN), stated that while the government removes subsidies, it should also invest in the development of other sources of energy. ”Government should invest more in other energy sources so as to augment the inadequate electricity grid”, Okurounmu said. ”Having these alternative sources are most times environmentally friendly and will reduce reliance on the existing electricity network”, he added.