Electricity tariff hike: Labour demands reversal as protests begin today

Today, on Monday, organised labour will start protests around the country against the Federal Government's elimination of subsidies from the power sector and increase in electricity tariffs.

Olatunji Ambali, the national treasurer of the Nigeria Labour Congress, and Tommy Etim, the national deputy president of the Trade Union Congress, who verified the scheduled protests on Sunday, asked that the price hike be reversed to the period of subsidies.

The Nigeria Electricity Regulatory Commission's Abuja headquarters, the Ministry of Power, and state offices of power distribution corporations are anticipated to close as a result of the labour action.

NERC revealed the increase in the Band A electricity tariff at a press conference in Abuja on April 3. Affected customers will now pay N225 per kWh, as opposed to N68/kWh previously.

This boost amounted to a 240% increase.

This move resulted in the withdrawal of subsidies from the tariffs of customers in the Band A category, who made up around 15% of the nation's 12.82 million power users.

The Federal Government claimed it will save N1.5 trillion in light of the tariff increase.

According to the government, Band A users will have access to power for up to 20 hours per day starting on April 3, 2024.

Nonetheless, a reversal of the raise to the subsidy era pricing was urged by 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.

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 new tariff system was rejected by the Senate Committee, which was chaired by Senator Enyinnaya Abaribe, he made this statement.

"If we don't raise the tariff, the whole industry will come to an abrupt stop. If we don't raise tariffs, the entire nation will be without light in the next three months with what we currently have. We'll leap to the next level thanks to the increment. We are both from Nigeria. We are also experiencing the effects, Adelabu said.

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 the tariff hike being reversed.

Speaking on May 1 at the International Workers Day commemoration in Abuja, NLC President Joe Ajaero argued that tariffs in a deregulated industry cannot be fixed by the government.

It is wrong to force Nigerians to pay increased bills for nonexistent electricity, expressed TUC President Festus Osifo, who criticised the raise as well. An act of daytime robbery and extortion directed on Nigerians called estimated billing.

A complete reversal of the tariff to the subsidy era is required, or else the unions vowed to picket NERC offices and issued a one-week ultimatum. Yesterday was the last day that Labour's ultimatum was valid.

In an attempt to placate the unions, the NERC last Monday mandated a revision of the tariff that dropped the price from 225/kWh to 206.8/kWh, or roughly 8.1%.

The naira's relative appreciation during the official foreign exchange window was the commission's explanation for the cut.

NERC suspends the raise

The 2024 Multi-Year Tariff Order change for Band A consumers, according to NERC, resulted in lower tariffs for all discos.

A revised price order for the month of May 2024 has been issued by the commission to the 11 power distribution firms in accordance with the pricing methodology set by the Nigerian power Regulatory Commission, the commission said in a statement announcing the drop.
The commission has authorised a reduction in end-user tariffs for Band "A" consumers from NGN225/kWh to NGN206.8/kWh after taking into account changes in the macroeconomic parameters during the month of April 2024, particularly the appreciation of exchange rates.

"The commission reiterates its dedication to delivering a well-rounded and efficient regulatory framework that meets the requirements of the Nigerian electricity supply sector."

The National Treasurer of the NLC, Ambali, claimed in an interview with one of our correspondents on Sunday in Abuja that the union has completely organised its affiliates and members to protest the rate hike.

"We applaud the federal government for stopping the cyber security levy, but labour is fully organised for nationwide protests against electricity tariff hikes."

We urge market women, students, NGOs, and civil society to join organised labour because we are all suffering from the government's evil policies as a group and it is a collective war, he said.

We can push that back together. As you can see, after our opposition, they agreed to remove the cyber security levy.

"If we fight this issue together, we can force the government to rescind its anti-people policies one by one. Join us at the barrier instead of leaving it to the NLC and the TUC so that we can together force the government to take the necessary action, he said.

In the meantime, civil society organisations have supported the confrontation that is taking place today (Monday), stating that they are dedicated to taking whatever action that could lessen Nigerians' suffering.

Dr. Jackson Omenazu, the Chancellor of the International Society for Social Justice and Human Rights, declared that his organisation will participate in the demonstrations that the labour leaders had organised.

"Look at the miseries of Nigerians; instead of making matters worse, the government ought to endeavour to implement policies that will lessen people's suffering. We fully support the NLC and the TUC," he declared.

In addition, the Civil Society Legislative Advocacy Centre endorsed the picketing of the power distribution companies and the NERC.

"We will join any protest that is going to help Nigerian people come out of the suffering that Nigerian government policies have put the people in," declared Mr. Auwalu Rafsanjani, Executive Director of CISLAC.

"In fact, CSOs don't need to wait until Organised Labour calls for protest," he continued. We have been advocating for an examination of government policies that exacerbate poverty, inequality, and corruption.

"On this step, we also support the NLC and the TUC. The Nigerian people have already endured enough suffering at the hands of an incompetent administration and leaders who seem to be encouraging social injustice, poverty, inequality, and a lack of comfort.

As civil society organisations, we firmly believe that cooperating with anyone who shares our values will help to guarantee that these issues are resolved. Many Nigerians struggle to pay for healthy food, comfortable housing, and an education. This is good news, and we hope the administration will take care of this issue, said Rafsanjani.

Okechukwu Nwanguma, the executive director of the Rule of Law and Accountability Advocacy Centre, declared his support for the rallies and insisted that the government take up the problems brought up by organised labour.

"We back the NLC and TUC's call to protest the tariff hike," he declared.