Some financial experts have advised the Federal Government not to remove electricity subsidy, saying such act can lead to tough economic conditions.
They said this in separate interviews with newsmen on Tuesday in Lagos.
Prof. Bright Eregha, Lecturer of Economics at the Pan-Atlantic University, advised the government not to contemplate the removal of the subsidy because of the current economic hardship.
“The people are already grappling with too many economic distortions which had led to the cost of living in the country.
“Then removing the subsidy on electricity will raise the inflation rate and worsen the people’s economic plight, “Eregha said.
He said that the government should focus more on improving the challenges of the energy sector rather than proposing the removal of subsidies.
He added that the federal government should be honest and dialogue with the people to assuage doubt, particularly at this period of economic austerity.
“This will reduce the distrust in government policies and enable the people to key into their programmes, “Eregha said.
Also speaking, Mr Godwin Anono, President Standard Shareholders Association of Nigeria, said the policy to remove electricity subsidy was not properly taught out.
“The policy will not achieve its desired objectives because the country power situation is yet to be improved upon.
“We barely have steady electricity, and the authorities are clamouring for subsidy removal in the country, “Anono said.
He noted that the government should be more concerned in providing pre-paid meters to prospective electricity consumers before implementing a new tariff regime.
“Implementing the proposed policy without addressing the metering challenges will be exploiting the people without any regulatory protection which isn’t the right things to do at this era of economic difficulties, “Anono said.
According to reports, the Minister of Power, Adebayo Adelabu, had said that the removal was initiated for effective energy administration.