By Precious Amadi
Concerns are mounting over the Federal Government’s proposal to end electricity subsidies by 2027, with industry experts warning that the policy could exacerbate the socio-economic challenges currently confronting millions of Nigerians.
Speaking in an interview, energy analyst Innocent Lord-Douglas cautioned that a complete rollback of government subsidies would trigger a sharp spike in utility tariffs, severely strain household budgets, and undermine commercial enterprise across the nation.
“Removing the electricity subsidy will lead to an increase in electricity tariffs, increase the cost of living, raise production costs for businesses, and may force many small and medium-scale enterprises to shut down,” Lord-Douglas stated.
He further noted that the sharp price adjustments might backfire on the power sector by driving consumers off the central transmission system, leading to wider environmental consequences as businesses and residents seek off-grid alternatives.
“Many households and businesses may boycott the national grid in favour of petrol and diesel generating sets, which will increase environmental pollution,” he warned. “I urge the government to reconsider the proposal.”
The warning comes amid growing public debate over the timing and feasibility of major fiscal reforms, with stakeholders calling for alternative interventions that balance cost recovery in the power sector with consumer affordability.
