The Trade Union Congress of Nigeria (TUC) has strongly condemned the recent increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC), warning that it could lead to unrest in the country.
Dr. Tommy Okoh, Deputy President of TUC, expressed the organization’s dismay at the hike, labeling it intolerable and urging the government to consider the plight of the economically disadvantaged citizens.
“The hike in the electricity tariff from 66/kWh to 225/kWh for people who enjoy electricity supply for 20 hours per day is totally unacceptable and a recipe for unrest,” Dr. Okoh stated, emphasizing the impracticality of the increase given the inconsistent electricity supply across the nation, including critical economic zones like airports.
He further asserted, “This government should know that they were not voted into office for the enslavement of the citizens but to protect and better the lots of the masses. This is an indication that the poor can no longer breathe.”
The recent tariff adjustment by NERC aims to reduce the government’s estimated N2.9 trillion electricity subsidy in the 2024 fiscal year, impacting a total of 1,974,385 electricity consumers.
Under the new tariff structure, Band A customers saw their tariffs surge by 230 percent from N68 per kilowatt-hour to N225/kWh, marking the cessation of federal government subsidies for customers receiving an average of 20 hours of electricity supply per day.
Explaining the rationale behind the decision, Mr. Musliu Oseni, Vice Chairman of NERC, cited the government’s failure to meet its financial obligations to the Nigeria Electricity Market, resulting in an accumulated debt of N3.5 trillion owed to power generation companies and gas suppliers.
The reclassification of Band A customers based on the duration of daily electricity supply aims to ensure that the tariff increase only affects those who benefit from extended power supply hours.
NERC has assured that the revenue generated from the increased tariffs would be directed towards sector investments and has committed to implementing measures to ensure that customers in Band A receive their due daily hours of electricity from distribution companies (DisCos).
As the country grapples with these changes, the TUC’s stance reflects broader concerns over the impact of utility cost increases on the average Nigerian, particularly amidst the current economic challenges.
