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Electricity Tariff Adjustment: Nigerian Government's Next Steps Following Workers' Demonstration The Abuja Electricity Distribution Company's offices were also closed, with workers barred from entering. |
The debate over the recent increase in electricity tariffs continues as Nigerian workers disrupted power sector operations on Monday, calling for the hike to be reversed.
DAILY POST has reported that organized labor has picketed the offices of all eleven Electricity Distribution Companies (Discos) and the Nigerian Electricity Regulatory Commission (NERC).
In the nation's capital, NLC president Joe Ajaero led the protest to the Ministry of Power and NERC headquarters.
The Abuja Electricity Distribution Company's offices were also closed, with workers barred from entering.
The protests extended to the offices of the eleven Discos across Kwara, Lagos, Kaduna, Plateau, Enugu, Sokoto, and other regions.
During the demonstration, Ajaero insisted that NERC must reconsider its approach to tariff hikes in the electricity sector.
He pointed out that the increase in tariffs is a primary factor behind the nation's escalating headline and food inflation rates, which were recorded at 33.20% and 40.01% respectively in March.
Following the one-day protest by organized labor, the Nigerian Government has expressed its willingness to enter negotiations.
Speaking with DAILY POST after the disruption at the Ministry of Power, the Ministry's spokesperson, Mrs. Florence Eke, stated that the Federal Government, represented by Permanent Secretary Mr. Mamman Mahmuda, has scheduled a consultative meeting with organized labor and other stakeholders for the following week to discuss the issue.
"The Ministry's role is to formulate policy, while implementation is carried out by agencies such as NERC," she explained.
"All relevant parties will be invited for thorough consultations next week," she added.
However, Nigeria Labour Congress spokesperson Benson Upah informed DAILY POST that the government should have engaged in consultations prior to the April 3 electricity tariff implementation.
He cautioned that the picketing serves as a precursor to further actions if the Government fails to retract the tariff increase.
"Consultations were expected before the hike. Today's events are a preview of what's to come if the Government remains inactive," he stated.
It's worth noting that in April 2024, NERC announced a 240% increase in electricity tariffs for Band A customers receiving 20-24 hours of power daily.
This adjustment resulted in Band A customers paying N225 per kWh, up from N68 per kWh.
The Government has defended the hike, claiming it would save the nation N1.5 trillion and affect only 15% of the 12.8 million electricity consumers.
Despite the public's rejection of the increase and a subsequent minor reduction of N18.2, the continued picketing by workers indicates that organized labor is not satisfied with the Government's modest concession.
Commenting on the situation, Ewetumo A A, a retired employee of the now-defunct Power Holding Company of Nigeria (PHCN), previously known as the National Electric Power Authority (NEPA), expressed that the labor action was overdue.
"Unfortunately, the NLC and TUC's picketing today comes too late.
"The tariff hike on April 3, 2024, although limited to Band A consumers, is causing widespread economic repercussions.
"The country's inflationary trend is both alarming and concerning.
"The recent increase only exacerbates the situation.
"NERC should implement a more sensible and incremental three-step review process for its Cost Reflective Tariff Regime to avoid destabilizing the economy.
"In the long run, the power sector requires significant capital investment to construct new facilities and upgrade the existing infrastructure.
"The Federal government should consider a Public-Private Partnership model to finance the power sector and involve the states in a comprehensive overhaul of the Power Sector," he conveyed to DAILY POST.
