NLC Vows To Fight Back After FG Raised Electricity Rates

Following the Federal Government's recent hike in the price of energy, the Nigeria Labour Congress, or NLC, has threatened a confrontation.

On Wednesday, April 3, the federal government announced and put into effect a 240 percent increase in the energy tariff that band “A” subscribers must pay.

It further stated that the short-term subsidized electricity price regime will be followed by a three-year transition plan to a fully cost-reflective tariff.

Nevertheless, the NLC did not agree with the decision and told the Federal Government to be ready for the consequences of the tariff hike, describing it as wicked and unpopular and emphasizing that the government should be prepared because it chose to follow the advice of the World Bank and the International Monetary Fund.

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.”

Manufacturers and organized labor, represented by the National Labor Congress (NLC) and the Trade Union Congress (TUC), had protested against the tariff increase that around 1.9 million customers would have to pay, which the federal government had approved and announced on Wednesday.

The band A category, which includes around 15% of the nation's 12.82 million power users, saw the complete removal of the electricity subsidy from their rate.

Through the Nigerian energy Regulatory Commission, or NERC, the Federal Government announced the rise in the price of energy in Abuja. Those who were impacted would now pay N225 per kilowatt-hour, up from the previous rate of N68, or almost a 240 percent increase.

The NLC and TUC, on the other hand, 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.

Group Those who receive up to 20 hours of power supply each day are considered electricity users.