SIR: As the cost of living continues its upward trajectory, the recent surge in electricity tariffs is yet another blow to the already strained finances of the ordinary citizens. This hike couldn’t have come at a worse time, coinciding with the removal of petrol subsidies and an alarming rise in the prices of essential goods and services. Furthermore, the exorbitant exchange rate only exacerbates the financial woes facing the masses.
The decision to increase electricity tariffs not only adds to the financial burden of households but also spells trouble for businesses, particularly in the manufacturing sector. With production costs soaring, companies are left with no choice but to pass on these expenses to consumers or face the grim reality of shutting down operations. Consequently, this vicious cycle of inflation and unemployment threatens to plunge the economy into further turmoil.
In the light of these challenges, urgent measures are needed to alleviate the burden on citizens and businesses alike. Firstly, the government must reconsider its decision to hike electricity tariffs, taking into account the already precarious economic situation. Also, efforts should be made to stabilise the exchange rate to mitigate the adverse effects of currency fluctuations on the cost of living.
Moreover, diversifying the energy mix by ensuring that state governments invest in alternative sources could help reduce reliance on the gained national grid and ultimately lower electricity costs in the long run. Furthermore, enhancing efficiency in the distribution and management of electricity resources can lead to cost savings that can be passed on to consumers.
Policies aimed at stimulating economic growth and job creation are crucial in alleviating the financial strain on citizens. This includes incentivising investment, supporting small and medium-sized enterprises, and fostering a conducive business environment that encourages innovation and entrepreneurship.
In conclusion, the timing of the increase in electricity tariffs couldn’t be more ill-fated, given the prevailing economic challenges facing the country. Urgent action is needed to alleviate the burden on citizens and businesses and steer the economy towards a path of sustainable growth and prosperity. It’s time for policymakers to prioritise the welfare of the people and implement measures that promote the affordability and accessibility of essential services like electricity.
Aladetan Abiodun is the secretary of the Trade Union Congress (TUC), Lagos State Council.
