Today, organized labor is launching nationwide protests against the increase in electricity tariffs and the elimination of subsidies by the Federal Government in the power sector. Olatunji Ambali, the National Treasurer of the Nigeria Labour Congress, and Tommy Etim, the National Deputy President of the Trade Union Congress, affirmed the scheduled protests in separate interviews with The PUNCH on Sunday. They are adamant about returning to the subsidy period and are demanding a reversal of the tariff hike. The labor action is anticipated to result in the closure of the Nigeria Electricity Regulatory Commission’s headquarters in Abuja, as well as the Ministry of Power and state offices of power distribution companies.
NERC disclosed the increase in electricity tariffs for Band A customers during a press briefing in Abuja on April 3. They revealed that affected customers would now be charged N225 per kilowatt-hour, a substantial jump from the previous rate of N68/kWh. This adjustment represented a staggering 240 percent increase. This decision signaled the elimination of subsidies for customers in the Band A category, comprising approximately 15 percent of the total 12.82 million power consumers nationwide.
The Federal Government projected a savings of N1.5 trillion based on the tariff hike. The government announced that the decision became effective on April 3, 2024, also mentioning that Band A customers would receive up to 20 hours of power supply daily. Nevertheless, the House of Representatives, organized labor, the Nigerian Bar Association, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, along with electricity consumers and civil society organizations, all called for a return to the subsidy-era tariff and demanded a reversal of the hike.The House urged the NERC to immediately halt the nationwide implementation of the new electricity tariff. However, during an investigative hearing conducted by the Senate Committee on Power, Minister of Power Adebayo Adelabu defended the tariff hike by asserting that without its implementation, the country would face a nationwide blackout within the next three months. This statement followed the rejection of the new tariff regime by the Senate Committee, chaired by Senator Enyinnaya Abaribe. Adelabu emphasized, “The entire sector will be at a standstill if we don’t increase the tariff. With the current situation, the entire country will plunge into darkness within the next three months without tariff increases. The increment will propel us to the next level. We, too, are Nigerians. We are experiencing the effects.”
Nevertheless, both the NLC and the TUC persisted in their demand for the reversal of the tariff hike, expressing discontent with the erratic power situation in the country, which they argued was hindering economic growth.
During the International Workers Day celebration in Abuja on May 1, NLC President Joe Ajaero asserted that the government cannot set tariffs in a sector that has already been deregulated.
Similarly, TUC President Festus Osifo criticized the tariff hike, stating, “It is unethical to compel Nigerians to pay higher tariffs for electricity that is not consistently available. Estimated billing is a form of extortion and blatant robbery against Nigerians.”
The unions issued a one-week ultimatum and threatened to protest at NERC offices if the tariff was not completely reversed to the subsidy era. The deadline set by the labor unions expired yesterday.
Last week Monday, in an attempt to placate the unions, the NERC issued a directive for a reduction in the tariff from 225/kWh to 206.8/kWh, marking a decrease of approximately 8.1 percent. The commission cited the relative strengthening of the naira in the official foreign exchange market as the reason behind this adjustment.
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