Labour vows a strike as FG presses for an increase in electricity  tariff

Despite requests for its reversal, the Federal Government insisted on Friday on the 240% tariff increase that power consumers in the band “A” category must pay.

It also disclosed that the short-term, subsidized electricity pricing system would be followed by a three-year transition plan to a fully cost-reflective tariff.

The Nigeria Labour Congress, however, was not pleased with the decision and advised the Federal Government to be ready for the fallout from the tariff hike, calling it “wicked” and “unpopular.” The Congress further emphasized that the government should be prepared for these consequences because it chose to heed the World Bank and International Monetary Fund.

Read also: 75% of Customers Will Keep Receiving Electricity Subsidies, Says Federal Government

One Saturday PUNCH, NLC Head of Information Benson Upah stated, “We did say earlier that this tariff hike is insensitive and unpopular. So if the government elects to continue with the hike or persists in something that is evil, I’m sure it is equally prepared for the consequences of that evil.

“The manufacturers are saying this is going to hurt businesses and make the environment more hostile, and we also said so. There is no place in the world where high power tariffs have supported manufacturing. Not even in the developed world.

“So, it completely beats our imagination for the minister to have the audacity to say that the policy would continue. What this means is that the minister and the President are not in charge. It is saddening that the minister elected to pursue an unpopular policy.”

Upah further said, “It shows that the minister and the President are not in charge. The people in charge are the World Bank and the IMF. They are the ones driving this highly injurious policy.

“So, our leaders should be prepared for the consequences of this highly injurious policy. That is what I’ll say about this issue for now.”

The Federal Government approved and announced the tariff hike that around 1.9 million consumers would have to pay on Wednesday, and manufacturers and organized labor had protested.

In the case of consumers in the band A category, which makes up around 15% of all 12.82 million power users nationwide, the electricity subsidy was discontinued entirely.

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At a press conference hosted by NERC in Abuja, the government revealed the increase in electricity prices. It said that individuals impacted would now pay N225 per kWh, as opposed to the previous cost of N68/kWh, or a roughly 240 percent increase.

According to the government, the decision became operative on April 3, 2024.

However, the Trade Union Congress, NLC, and the Organised Private Sector protested the increase in electricity user tariffs and called for the decision to be overturned.

They claimed that the pricing increase would drive small and medium-sized businesses out of business, worsen inflation, and force manufacturers out of business. They also claimed that no area in Nigeria now enjoys up to 20 hours of electricity supply every day.

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