Femi Falana, a Senior Advocate of Nigeria (SAN), has urged Chief Bola Ahmed Tinubu to disregard the International Monetary Fund’s (IMF) suggestion to raise fuel and electricity prices in Nigeria.
Falana conveyed this message in a statement released on Friday.
He pointed out that in November 2023, Minister of Power Adebayo Adelabu revealed that Tinubu had halted the implementation of electricity tariff hikes, emphasizing the need for improved power supply before considering tariff adjustments.
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Adelabu emphasized the economic challenges facing Nigerians, including fuel subsidy removal, currency devaluation, inflation, and the need for empathetic policies.
Contrary to speculations, the Nigerian Electricity Regulatory Commission (NERC) dismissed rumors of electricity price hikes on January 1, 2024.
Similarly, the Nigerian National Petroleum Corporation Limited refuted plans to increase petrol prices following currency devaluation.
However, recently, the IMF advised the Nigerian government to remove fuel and electricity subsidies to reflect market realities.
This directive prompted Minister of Power Mr. Adedibu to advocate for a transition to a cost-effective tariff model due to mounting debts to generating and gas companies.
Falana criticized the IMF’s double standards, highlighting instances where advanced economies like the UK, US, and France continued subsidizing energy amid global challenges.
He urged the Nigerian government to reject IMF’s pressure to remove subsidies and float the Naira, emphasizing the need to consider Nigeria’s unique economic circumstances.
In conclusion, Falana called for a cautious approach to IMF directives, urging the government to prioritize Nigerian interests over external pressures.