The rising cost of electricity, fuel and food items is piling pressure on Nigerian households and could spark another round of social unrest.
Dr. Boniface Chizea, an economist, made this assertion in his analysis on the “Hike in The Cost of Electricity, Fuel and Food Items and Effects on the Nigerian Households.”
According to him, strategic steps need to be taken by the government to stabilize the economy, as current economic challenges result from the failure of leadership. He said the 100% increase in the electricity tariff affected the middle-class, who expect improved service.
The economist believed that the removal of electricity subsidy was too sudden and has taken a toll on citizens. He thought that the challenge of Nigeria was not the removal of subsidies but the management of the nation’s resources.
Dr. Chizea decried the misallocation of resources and its attendant socio-economic difficulties. According to him, “It is in the collective interest of Nigeria that the citizens’ standard of living improves to avert a social crisis.”
The CEO of BIC Consultancy Services stressed the need for government to prioritize productivity, which means sectors like agriculture, manufacturing, technology, and transportation would need more support.
He called for a rejigging of the social investment plan (SIP) to relieve the hardship of citizens.
Looking at the economic impact of rising energy prices, he said businesses would begin to rationalize resources, cut costs and invest in areas that drive efficiency.
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