The Osun Civil Societies Coalition has warned that the proposed phase-out of electricity subsidy from 2027 could worsen the economic hardship facing Nigerian households and businesses.
The coalition, in an Independence Day statement signed by its Chairman, Comrade Dr Waheed Lawal, said any substantial increase in electricity tariffs could place additional pressure on households already struggling with rising food, transportation and housing costs.
The OCSC, while acknowledging reported improvements in electricity supply in Osun State and across the country, said improved reliability must be matched with affordability if the gains are to translate into better living conditions for Nigerians.
The coalition said the burden of addressing financial and structural challenges in the power sector should not be transferred disproportionately to households, workers, traders, farmers, artisans and small businesses.
According to the group, higher electricity tariffs could increase production costs, reduce disposable income and place additional pressure on small and medium-sized enterprises, with possible consequences for employment and economic growth.
The OCSC called on the Federal Government to address what it described as underlying structural problems in the electricity sector before relying principally on subsidy removal to resolve the sector’s financial challenges.
It listed technical and commercial losses, electricity theft, inadequate generation, transmission and distribution infrastructure, insufficient metering, estimated billing, revenue leakages and collection challenges among the issues requiring urgent attention.
The coalition also demanded greater transparency on the financial basis of the proposed subsidy policy, asking the government to publish information on the annual cost of the existing subsidy, projected savings from its removal and the expected effect on electricity tariffs.
It further urged the government to disclose the likely impact of the policy on households, farmers, manufacturers, traders and other businesses, as well as measures being planned to protect vulnerable electricity consumers.
While commending the Federal Government and the Minister of Power, Chief Joseph Olasunkanmi Tegbe, for reported improvements in electricity supply, the coalition urged the government to sustain and deepen the gains.
The group said Nigeria’s 66th Independence anniversary should prompt renewed efforts to translate political freedom into economic opportunity, affordable essential services and improved living conditions.
“Nigeria deserves electricity that is reliable, sustainable and affordable,” the coalition said.
