The Labor Congress warns of a confrontation if the Federal Government persists with its plans to increase Electricity Tariffs

The Federal Government is standing resolute on its decision to enforce a 240% increase in the electricity tariff for power consumers in the ‘A’ category, despite calls for its reversal. The government has declared that the subsidized power pricing regime will be temporary and they have a plan in place to gradually shift towards a full cost-reflective tariff over the next three years. The Nigeria Labour Congress has threatened to protest if the Federal Government insists on the hike in electricity tariff. The Congress described the hike as cruel and unpopular, and stated that the government should be ready to face the consequences if it chooses to listen to the World Bank and International Monetary Fund. The Head of Information at NLC, Benson Upah, said, “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.” Manufacturers and organized labor have opposed the tariff hike payable by approximately 1.9 million consumers, which was approved and announced by the Federal Government on Wednesday. The government announced the hike in electricity tariff at a press briefing in Abuja by NERC. The tariff of consumers on the band A category, which constitutes about 15% of the total 12.82 million power consumers across the country, no longer has a subsidy on electricity. The government stated that the decision took effect on April 3, 2024, and that those affected would pay N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240% increase. However, the Organized Private Sector, NLC, and the Trade Union Congress insisted that the decision be reversed and kicked against the hike in tariff for power users. They argued that the hike in tariff would drive manufacturers out of business, exacerbate inflation and stifle small and medium enterprises, adding that there was no place in Nigeria currently enjoying up to 20 hours of power supply daily. Band A power users are those who get up to 20 hours supply of electricity daily. In a press briefing in Abuja on Friday, the Minister of Power, Adebayo Adelabu, stood firm that the Federal Government would continue with the new tariff regime for Band A consumers despite calls for its reversal. He said that the government could no longer continue paying humongous sums as power subsidy, stressing that subsidy on electricity for 2024 would cost the government about N2.9tn. The minister argued that the tariff hike was pro-poor, as those affected were mainly residents who could afford the cost, but noted that subsidy on electricity was only going to be for the short term. The Federal Government plans to end the subsidy on power within three years, and the withdrawal of subsidy from band A customers is just the pilot phase.