The Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Organised Private Sector have expressed strong opposition to the recent increase in electricity tariffs for Band A customers.
This increase, announced by several distribution companies including Ibadan Electricity Distribution Company, Eko Electricity Distribution Company, and Kaduna Electricity Distribution Company, raises tariffs from N206.80 per kilowatt-hour to N209.50/kWh.
The Nigerian Electricity Regulatory Commission (NERC) attributed the tariff hike to factors such as the depreciation of the naira against the US dollar and inflation. However, the move has sparked widespread criticism from organized labor, private sector operators, and consumers who argue that the increase is ill-timed and detrimental to the economy.
Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, highlighted the potential negative impact on local industries, stating, “The constant increase in cost will lead to a decrease in demand for locally made goods, making them less competitive with imported goods from China.
This will result in a decrease in profit, potentially leading to a shortage of industries. If industries are unable to sell their products, they may resort to reducing salaries or laying off workers, which could lead to an increase in crime.”
Kuti-George also emphasized the need for unbundling the power sector to foster competition, similar to the telecommunications sector, which could help drive down costs and improve service quality.
Dr. Femi Egbesola, National President of the Association of Small Business Owners of Nigeria, warned that the tariff increase could push struggling businesses over the edge, leading to higher inflation and economic downturn.
He called on the government to reconsider the decision, stating, “This hike will push them over the edge. Universities are warning of impending bankruptcy, and businesses will be forced to close shop.”
Dr. Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry, called for measures to reduce inflation and interest rates, warning that the twin burden of high inflation and interest rates is overheating the economy and causing increased volatility and uncertainty.
Ogochukwu Igwebike, Secretary-General of the National Union of Electricity Employees, vowed to resist the tariff hike, stating, “We don’t accept it and it shall be resisted by workers because the current economic realities do not support any such increase.”
Prof. Theophilus Ndubuaku, Deputy Head of the NLC political commission, criticized the lack of consultation with civil society and organized labor, emphasizing that the hike is out of touch with the economic hardships faced by Nigerians.
In Ekiti State, TUC Chairman Sola Adigun described the tariff increase as inhuman and unacceptable, highlighting the severe power supply challenges in the state.
The widespread opposition underscores the need for a more inclusive and consultative approach to policy decisions affecting the cost of living and economic stability in Nigeria.
