Manufacturers And Organized Labour Protest FG's Increase In Electricity Tariffs

THE Federal Government has been under fire from manufacturers and organized labor due to the 240 percent increase in the electricity cost that customers who receive a 20-hour power supply must pay.

Both organizations argued that the electricity subsidy was necessary and warned that eliminating it would drive manufacturers out of business and increase inflation.

The Band A group of power consumers, which makes up around 15% of all power users nationwide, no longer has to pay the electricity subsidy as part of their bill.

On Wednesday, April 3, the Nigerian Electricity Regulatory Commission, or NERC, on behalf of the Federal Government announced an increase in the electricity bill in Abuja. It also stated that those impacted would now have to pay a rate of N225.

The government's decision is not only insensitive, it is callous. It further pauperizes consumers, especially workers whose wages are fixed and insufficient.

On Wednesday, April 3, the Federal Government, acting through the Nigerian Electricity Regulatory Commission (NERC), announced an increase in the cost of electricity in Abuja. Those who were affected would now have to pay a tariff of N225 per kWh, up from the previous rate of N68 per kWh, or a 240 percent increase.

The administration announced that the ruling was effective right away.

However, organized labour, represented by the Trade Union Congress (TUC) and the Nigeria Labour Congress (NLC), fought against the increased electricity cost for all consumers, Band A or not.

They said that no part of Nigeria enjoyed up to 20 hours of daily power supply, and that the pricing increase would drive small and medium-sized businesses out of business and exacerbate inflation.

Before the Federal Government's most recent decree via NERC went into effect, Band A power consumers paid roughly N68 per kWh and had access to up to a 20-hour daily supply of energy.

Prior to the Federal Government's latest decision through NERC, Band A power customers paid approximately N68 per kWh and had access to up to a 20-hour daily supply of electricity.

The Federal Government's decision to raise the electricity tariff was deemed insensitive and cruel by the NLC.

Benson Upah, a congress spokesperson, announced this by saying, “It similarly makes the operating environment more hostile for manufacturers with the potential for an astronomical rise in the cost of goods and services or the worst case scenario, more closures and loss of jobs.

“The only people who stand to gain from this mindless social violence against the people are the World Bank and IMF (International Monetary Fund).”

The TUC asserted that the Federal Government's primary focus was income generation at the expense of citizens' livelihood.

Tommy Etim, the Deputy President of the TUC, stated, “The government is being insensitive to the plights of citizens. I think they believe so much in revenue generation to the detriment of the survival of the citizens. Let me state that the hike in the electricity tariff from N66 per kWh to N225 per kWh for those who enjoy electricity supply for 20 hours per day is unacceptable and a recipe for individual unrest.

“This shows clearly that Nigeria is not ready for 24-hour electricity supply. As we speak, you cannot point anywhere in Nigeria that people are enjoying 20 hours of electricity supply, not even at the airport where it is expected for economic reasons. I think that the government has goofed again, especially at this time of socioeconomic challenges where the cost of living is very exorbitant and the sa of the workers remained static.”