Labour threatens showdown as FG stands firm on electricity tariff hike
Despite mounting pressure for its reversal, the Federal Government remains resolute in its decision to implement a 240 per cent increase in electricity tariff for band ‘A’ consumers.
This move, aimed at achieving full cost-reflective tariffs within three years, has sparked outrage, particularly from the Nigeria Labour Congress (NLC).
The NLC condemned the tariff hike as “wicked and unpopular,” warning the government to brace for the consequences. Benson Upah, Head of Information at NLC, emphasized that the decision to proceed with the hike indicated a lack of leadership from the government, with international bodies like the World Bank and IMF seemingly driving the policy agenda.
The tariff hike, affecting approximately 1.9 million consumers, entails the complete withdrawal of electricity subsidy for band ‘A’ customers, who enjoy up to 20 hours of power supply daily. This translates to an increase from N68 to N225 per kilowatt-hour.
Despite widespread opposition from stakeholders including manufacturers and organised labour, the Minister of Power, Adebayo Adelabu, defended the government’s stance. Adelabu cited the unsustainable nature of power subsidies, which cost the government about N2.9 trillion in 2024 alone, representing over 67 per cent of the total electricity production costs.
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He further justified the withdrawal of subsidies for band ‘A’ consumers, asserting that it would free up funds for investment in other critical sectors like health and education. Adelabu maintained that the tariff hike was a necessary step towards achieving a more sustainable and pro-poor electricity pricing regime in the long run.
Despite assurances of a transition plan towards cost-reflective tariffs, the government’s firm stance on the issue sets the stage for a potential showdown with labor unions and other stakeholders opposed to the tariff hike.
The coming days may witness intensified protests and negotiations as both sides seek to advance their respective interests in this contentious issue.
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