Organized labour is set to embark on nationwide protests starting Monday (today) in response to the recent electricity tariff hike and removal of subsidy by the Federal Government in the power sector.
Olatunji Ambali, the National Treasurer of the Nigeria Labour Congress, and Tommy Etim, the National Deputy President of the Trade Union Congress, confirmed the planned protests in separate interviews with The PUNCH on Sunday. Both leaders emphasized the urgent need for the reversal of the tariff hike to return to the subsidy era.
The protests are expected to result in the shutdown of the Abuja headquarters of the Nigeria Electricity Regulatory Commission, the Ministry of Power, and state offices of power distribution companies.
The Nigeria Electricity Regulatory Commission (NERC) announced the tariff hike for Band A customers during a press briefing in Abuja on April 3, revealing that affected customers would now pay N225 per kilowatt-hour, a significant increase from the previous rate of N68/kWh. This represented a 240 per cent increase, marking the removal of subsidy from the tariff of Band A customers, who constitute about 15 per cent of the total 12.82 million power consumers across the country.
Despite the government’s assertion that the tariff hike would lead to significant savings of N1.5 trillion and ensure up to 20 hours of power supply daily for Band A customers, various stakeholders, including the House of Representatives, organized labour, and civil society organizations, have vehemently opposed the hike, demanding a return to the subsidy era tariff.
Minister of Power, Adebayo Adelabu, justified the increase during an investigative hearing by the Senate Committee on Power, warning of a nationwide blackout within the next three months if the tariff hike was not implemented. However, the NLC and TUC remained firm in their demand for a reversal, citing dissatisfaction with the current state of power supply and its adverse effects on economic growth.
In response to the unions’ ultimatum, the NERC ordered a downward review of the tariff from 225/kWh to 206.8/kWh last week Monday, attributing the reduction to the relative appreciation of the naira in the official foreign exchange window.
