The Federal Government, led by President Bola Ahmed Tinubu, has responded to organized labor’s opposition regarding the electricity tariff hike and subsidy removal in the sector. Florence Eke, spokesperson for the Ministry of Power, disclosed this during an interview with The PUNCH in Abuja.
Eke reiterated Minister of Power Adebayo Adelabu’s rationale for the tariff hike, emphasizing that the government stands firm on its decision, diverging from the stance of trade unions. She emphasized that the electricity subsidy was becoming unsustainable for the government.
This statement comes amidst organized labor’s two-week ultimatum demanding the reversal of the tariff increase. However, the Trade Union Congress maintains its stance on the ultimatum, while President of the Nigeria Labour Congress, Joe Ajaero, opposes the tariff hike, arguing against government interference in a deregulated sector.
The Nigeria Electricity Regulatory Commission announced the tariff hike for Band A customers, with rates rising to N225 per kilowatt-hour from the previous N68/kWh, marking a substantial increase of about 240 percent. Subsidies were completely withdrawn for Band A customers, who constitute approximately 15 percent of the total 12.82 million power consumers nationwide.
The government expects to save N1.5 trillion with this decision, effective from April 3, 2024, promising Band A customers up to 20 hours of daily power supply.
