Proton Energy CEO on Nigeria’s social contract & how to address electricity tariff challenges

Nigeria is grappling with social contract concerns as labor unions threaten to strike over recent tariff hikes in the country. The increase in electricity bills and petrol prices has sparked nationwide discussions on the trust between the government and its citizens. Oti Ikomi, Executive Vice Chairman and CEO of Proton Energy, sheds light on the evolving democratic ideals in the country and the challenges faced by the citizens. Ikomi emphasizes the need for transparent governance and pro-poor economic policies to build trust and confidence among the people. The ongoing structural changes in Nigeria, such as the removal of subsidies and focus on anti-corruption measures, have further contributed to the uncertainty among the populace. Despite facing a 6% reduction in GDP and rising insecurity, Ikomi calls for unity and resilience during these challenging times. He stresses the importance of reducing the cost of governance and prioritizing resource distribution to benefit the people. Addressing the tariff hikes, Ikomi acknowledges the short-term pain but emphasizes the long-term benefits that will come from the improvements in service quality. He highlights the efforts to enhance transmission, reduce losses, and increase local production of meters to address the challenges faced by consumers. Ikomi urges the government and labor leaders to engage in constructive discussions to find a common ground and ensure a smooth transition amidst the tariff changes. The social contract between the government and its citizens is under scrutiny as Nigeria navigates through economic hardships and security concerns. The need for transparent governance, pro-poor economic policies, and efficient resource distribution is paramount to building trust and confidence among the people. As the country undergoes structural changes and addresses tariff challenges, unity and collaboration between stakeholders will be essential to overcome the obstacles and move towards a more sustainable future.