NLC, FG set for showdown over fresh electricity tariff hike

A showdown may be imminent between the Nigeria Labour Congress and the Federal Government over a fresh increase in electricity tariff.

A new statement emanating from the electricity distribution companies has informed consumers of a new tariff regime for implementation with effect from September, having been approved by the Nigerian Electricity Regulatory Commission.

But the NLC has rejected the new tariff and urged the Federal Government not to implement it.

The labour union said while many sectors, including power, have been increasing tariffs, there had not been commensurate increases in workers’ wages.

NLC Deputy President Joe Ajaero, who spoke on the pains of Nigerian workers, wondered why electricity regulator – NERC – was considering another tariff increase when the wages of workers had remained stagnant.

Ajaero, who doubles as the General Secretary of the National Union of Electricity Employees (NUEE), said there was a regulatory hijack of the power sector by electricity distribution companies (DisCos), who he said were bent on transferring their “inefficiencies” to poor Nigerians.

He said five months after a seven-man technical committee on electricity tariff submitted its report, the Federal Government was yet to implement the recommendations in the report to reduce electricity tariff.

The seven-man technical committee on electricity tariff submitted its report on February 22, 2021 at the Banquet Hall of the Presidential Villa in Abuja to Labour and Employment Minister Chris Ngige.

The minister had said at a bipartite meeting between the government and organised labour that the government would consider the reports on electricity tariff and petrol increases.

Ajaero, who spoke on a breakfast programme on African Independent Television (AIT), Kakaaki, said, “Late last year when this issue came up (of course, you know they equally increased electricity tariff by 100 per cent), the NLC stepped in and then they set up a seven-man committee headed by Minister of State for Labour and Employment, Mr Festus Keyamo (SAN). I happen to be a member of the committee.

“We had certain assumptions – including the issue of who the members of NERC are – because it was clear who sits at NERC at the level of consultation.

“The law is clear that you have to equally consult with stakeholders before any increase (in electricity tariff) and those agreements were reached that the price of gas must be situated; that if we situate the price of gas very well, even what we are paying will crash.”