Today, organised labour will start nationwide protests against the Federal Government of Nigeria’s subsidy removal from the power sector and 240% increase in electricity tariffs.
The National Deputy President of the Trade Union Congress, Tommy Etim, and the National Treasurer of the Nigeria Labour Congress (NLC), Olatunji Ambali, both confirmed the planned protests in separate interviews on Sunday, and they both insisted on rolling back the tariff hike to the time of subsidies, according to The PUNCH reports.
The Nigeria Electricity Regulatory Commission’s Abuja headquarters, the Ministry of Power, and state offices of power distribution corporations are anticipated to close due to the labour action.
The development marked the removal of subsidy from the customers’ tariff in the Band A category, constituting about 15 per cent of the total 12.82 million power consumers across the country.
The Federal Government estimated that the tariff increase would save N1.5 trillion.
The government announced that the decision became operative on April 3, 2024 and that Band A consumers will have access to power for up to 20 hours daily.
Nonetheless, the House of Representatives, organised labour, the Nigerian Bar Association, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, electrical customers, and civil society organisations urged a reversal of the raise to the subsidy era pricing.
The House demanded that the NERC immediately halt the nationwide rollout of the new electricity rate.
However, Minister of Power Adebayo Adelabu justified the hike by claiming that, should the rise in energy tariff not go into effect, there would be a nationwide blackout within the next three months during an investigative session by the Senate Committee on Power.
After the Senate Committee rejected the new tariff system, chaired by Senator Enyinnaya Abaribe, he made this statement.
“The entire sector will be grounded if we don’t increase the tariff. With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariffs. The increment will catapult us to the next level. We are also Nigerians. We are also feeling the impact,’’ Adelabu declared.
But even as they voiced their displeasure with the nation’s epileptic electricity status and said it was impeding economic growth, the NLC and the TUC insisted on reversing the tariff hike.
Speaking at the International Workers Day celebration in Abuja on May 1, the NLC President, Joe Ajaero, said the government cannot fix tariffs in a sector that has already been deregulated.
The TUC President, Festus Osifo, also faulted the hike, saying, “It is unethical to force Nigerians to pay higher tariffs for non-existent electricity. Estimated billing is an extortion and daylight robbery against Nigerians.”
The unions issued a one-week ultimatum and threatened to picket NERC offices if a total tariff reversal to the subsidy era was not completed. Labour’s ultimatum expired on Sunday (yesterday).
In a move to appease the unions, the NERC last week Monday ordered a downward review of the tariff from 225/kWh to 206.8/kWh, representing approximately an 8.1 per cent reduction.
The commission attributed the cut to the relative appreciation of the naira in the official foreign exchange window.
The NLC’s National Treasurer, Ambali, declared that the union has completely organised its affiliates and members to resist the rate increase.
“We commend the Federal Government on halting the cyber security levy; however, labour is fully mobilised for the electricity tariff hike protests across the country.”
Etim, the National Deputy President of the TUC, echoed Ambali’s remarks by stating that organised labour was prepared for the planned statewide protests at the NERC offices.
“Of course, Labour is fully mobilised for the protests which will start tomorrow (Monday.)
