Labour Unrest Looms Over Electricity Tariff Hike as Protests Commence Today

Today marks the commencement of nationwide protests led by organized labour against the recent electricity tariff hike and subsidy removal in Nigeria’s power sector. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), among others, are set to picket the Nigeria Electricity Regulatory Commission (NERC) offices and power distribution companies across the country.

National Treasurer of the NLC, Olatunji Ambali, and National Deputy President of the TUC, Tommy Etim, confirmed the planned protests, emphasizing the demand for a return to the subsidy era tariff.

The tariff hike, announced by NERC on April 3rd, saw a significant increase of 240% for Band A customers, resulting in a rate of N225 per kilowatt-hour from the previous N68/kWh. This decision affected approximately 15% of the total 12.82 million power consumers nationwide.

While the government stated that the hike aimed to save N1.5 trillion and ensure up to 20 hours of daily power supply for Band A customers, various stakeholders, including the House of Representatives, civil society organizations, and consumers, called for a reversal of the decision.

In response to the protests, NERC recently announced a downward revision of the tariff to N206.8/kWh, citing changes in macroeconomic parameters, particularly the appreciation of the naira. Despite this reduction, organized labor remains steadfast in its demand for a complete reversal.

Labour leaders, including NLC President Joe Ajaero and TUC President Festus Osifo, expressed dissatisfaction with the hike, emphasizing its adverse effects on economic growth and the unfair burden it places on consumers.

As protests kick off nationwide today, civil society groups have pledged their support, highlighting the need for policies that alleviate rather than exacerbate the hardships faced by Nigerians. The protests aim to compel the government to address the concerns raised by organized labour and prioritize the welfare of the people.