NLC threatens to shut down economy as Tinubu’s government insists on electricity tariff hike
The Nigerian Labour Congress (NLC) has threatened to shut down the economy as Federal Government under President Bola Ahmed insisted on the 240 per cent hike in tariff payable by power consumers in the band ‘A’ category despite calls for its reversal.
The government announced the hike in electricity tariff at a press briefing in Abuja by NERC, adding that those affected would pay N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase.
The government stated that the decision took effect on April 3, 2024.
The development means subsidy on electricity was withdrawn completely from the tariff of consumers on the band A category, which constitute about 15 per cent of the total 12.82 million power consumers across the country.
It also revealed that the subsidised power pricing regime would be for the short term, with a transition plan to achieve a full cost-reflective tariff within three years.
However, the decision did not go down well with the Nigeria Labour Congress, which told the Federal Government to prepare for the consequences of the tariff hike, which it described as wicked and unpopular, stressing that since the government preferred to listen to the World Bank and International Monetary Fund, it should be ready to face the consequences.
Speaking to The PUNCH on Saturday, the Head of Information, NLC, Benson Upah said; “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 added, “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.”
Similarly, the 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, has warned the Federal Government that Nigerians will suffer more with an increase in electricity tariffs.
Atiku said in a statement he personally signed on Friday that the increase in electricity tariffs would exacerbate the citizens’ hardships, particularly as inflationary pressures were on the rise.
He admonished the Federal Government, particularly NERC, to understand the root cause of inefficiencies in the power sector before implementing another round of reforms.
The statement read in part “As usual, the government is unleashing another dose of reforms without adequate notice and without an adequate post-reform plan to mitigate the pain.
“The increase in electricity tariff comes at a time when Nigerian citizens are going through excruciating difficulties occasioned by the withdrawal of subsidy on PMS and floating of the domestic currency.
“The government has not successfully dealt with the pains associated with the implementation of those measures, and now this. The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated. Our manufacturing sector will similarly be impacted negatively. Not only are they paying higher interest rates on their bank loans, but also paying more for diesel, and paying higher wages as a result of the new minimum wage. The President’s men are pushing the economy into a deeper crisis. His reforms are without a human face.
“It is important that we understand the root cause of the inefficiencies in the power sector before unleashing another dose of reforms. It is time to revisit the privatisation exercise that produced the Discos.
“Tinubu must (a) ensure that these reforms are sequenced, (b) implement measures to mitigate the pain, and (c) hold the NERC responsible for ensuring improved service delivery.”
