A stark warning has been issued by notable figures in Nigeria’s energy sector, highlighting the critical need for an increase in electricity tariffs to avoid plunging the nation into darkness. The cautionary statement, made by Adelabu, underscores the urgency of addressing the financial challenges facing the power sector to ensure the reliability and stability of electricity supply across the country.
Adelabu emphasized the necessity of adjusting electricity tariffs to reflect the true cost of production and distribution, pointing out that failure to do so could have dire consequences for consumers and the overall economy. The proposed tariff hike is viewed as essential for attracting much-needed investment in infrastructure and technology to modernize Nigeria’s electricity grid and enhance service delivery.
The call for tariff adjustment comes amid ongoing efforts by the government and stakeholders to revitalize the power sector and address longstanding issues of inefficiency and underinvestment. Despite significant strides in recent years, challenges such as inadequate generation capacity, transmission bottlenecks, and revenue shortfalls continue to hamper progress in the sector.
Experts warn that without adequate funding and revenue streams, power utilities may struggle to maintain operations and meet growing demand for electricity, leading to disruptions in service and prolonged outages. The proposed tariff increase is seen as a crucial step toward ensuring the financial sustainability of power companies and securing the long-term viability of the energy sector
While the prospect of higher electricity tariffs may be met with resistance from consumers already burdened by high living costs, proponents argue that it is a necessary measure to guarantee the availability and reliability of electricity supply. They stress the importance of striking a balance between affordability for consumers and financial viability for power companies to achieve sustainable growth and development in the sector.
As Nigeria grapples with the challenges of modernizing its energy infrastructure and expanding access to electricity, stakeholders must work together to find equitable and sustainable solutions. By addressing the underlying financial constraints and implementing reforms to improve efficiency and transparency in the power sector, Nigeria can unlock its vast potential for economic growth and development.
Source: Tribune Online Nigeria
