Labour Opposes FG on Electricity Tariff Hike ; Threatens Nationwide Shutdown.

Labour Opposes FG on Electricity Tariff Hike ; Threatens Nationwide Shutdown.

The Federal Government has maintained its stance on the recent 240 per cent hike in electricity tariff for consumers in the ‘A’ category band, despite mounting pressure for its reversal. In a press briefing on Friday, the government reiterated its commitment to transitioning towards a full cost-reflective tariff within a three-year period.

However, the Nigeria Labour Congress (NLC) has vehemently opposed the tariff hike, labeling it as “wicked and unpopular.” Benson Upah, the Head of Information at NLC, warned the government to brace for the consequences of its decision, accusing it of prioritizing directives from international financial bodies over the welfare of its citizens.

Manufacturers and organized labor have also voiced concerns, highlighting the potential adverse effects of the tariff hike on businesses and the economy. They argue that such increases could drive manufacturers out of business, exacerbate inflation, and impede the growth of small and medium enterprises.

Despite the outcry, the Minister of Power, Adebayo Adelabu, defended the tariff hike, citing the unsustainable nature of government subsidies in the power sector. Adelabu emphasized the need to phase out subsidies gradually, redirecting saved funds towards vital sectors such as health and education.

Meanwhile, the Abuja Electricity Distribution Company Plc (AEDC) came under fire for applying the new tariff rate indiscriminately across consumer bands, contrary to directives. The Nigerian Electricity Regulatory Commission (NERC) fined the AEDC ₦200 million for non-compliance, demanding reimbursement to affected customers and adherence to prescribed billing practices.

Political figures including former Vice President Atiku Abubakar and the Minority Caucus of the House of Representatives have condemned the tariff hike, warning of its adverse impacts on citizens already grappling with economic hardships.

Civil society organizations and industry stakeholders have echoed these sentiments, criticizing the government’s decision as insensitive and detrimental to the welfare of Nigerians. They urge authorities to prioritize dialogue and transparency in addressing energy sector challenges, advocating for sustainable solutions that benefit all stakeholders.

For Publication of Press releases, Statements, Advert Inquiries, send an email to heralderstimesnetwork@gmail.com