New electricity tariff insensitive, wicked – NLC, showdown imminent

New electricity tariff insensitive, wicked – NLC, showdown imminent

• Manufacturers kick, ActionAid says govt will bear consequences of its actions

The stage appears set again for another round of showdown between the organised labour and the government over the latest increase in the tariff of electricity announced on Wednesday by Nigerian Electricity Regulatory Commission (NERC).

The Nigeria Labour Congress (NLC) and manufacturers among other groups have rejected the new tariff hike.

The NERC in announcing the tariff hike said consumers in the Band A classification would pay N225 for kilowatt hour (kwh) instead of N68, being charged before before Wednesday.

The commission said the increase was made based on consultations with the 11 electricity distribution companies (Discos).

It also stated that it was due to the Federal Government’s failure to pay over N2.9 trillion that would accrue by the end of 2024 as electricity subsidy after preventing them from applying cost reflective tariff.

Consumers under the Band A feeders are those enjoying an average of 20 hours of power supply daily, amounting to pay about N135, 000 monthly.

NERC’s Vice Chairman, Musiliu Oseni, said on Wednesday in Abuja that the increase would affect only 15 per cent of the 12 million electricity consumers. It is expected to take effect immediately.

In it’s reaction, the NLC described the new electricity tariff hike as insensitive and wicked.

It said this would further impoverish the already pauperised Nigerians battling the hardship caused by the fuel subsidy removal.

Daily Trust quoted Head of Information at the NLC headquarters, Benson Upah, as saying the labour would take a position on the “chaotic” policy after appropriate organs of the movement meet.

He said, “The government’s decision is not only insensitive, it is callous. It will further pauperise consumers, especially workers whose wages are fixed and insufficient.

“It similarly makes the operating environment more hostile for manufacturers with potential for an astronomical rise in cost of goods and services or in 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. Pity! We will get back to you on that (next step) after the appropriate organs decide.”

Country Director, ActionAid Nigeria, Andrew Mamedu, said the government should recognise that its decision to remove the fuel subsidy contributed to the current situation.

“Therefore, the government should be prepared to bear the brunt of these policy decisions without unduly passing on the burden to Nigerian citizens.

“It is important to note that energy security is one of the major areas that contribute to national security and welfare, which explains why nations guide their energy sector seriously and are always up and doing ensuring its availability and affordability,” he said.

A former chairman of NERC, Sam Amadi, said the electricity tariff increase would cause power theft and corruption.

He said the government should allow a special window for the distribution companies to access dollars at a preferential rate.

President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Kelvin Oye, in a statement, said, “While the commission’s efforts to enhance metering and protect consumers from over-billing are commendable, the tariff hike, influenced by the rise in natural gas base prices, has implications for the cost of operations across businesses that already face a fragile economic recovery.

“We understand the necessity of aligning energy costs with market realities to foster sector investment and sustainability, nevertheless, we stress the importance of considering the broader economic impact on industries and the timing of such adjustments.

“NACCIMA continues to advocate for a transparent and gradual approach in policy implementation, emphasizing the need for broad stakeholder engagement to mitigate adverse effects on business competitiveness and consumer prices.’’