•NLC, TUC, and others will protest at NERC office and DisCos in 36 states
The organized labor will start nationwide protests on Monday (today) against the increase in electricity price and the removal of subsidy by the Federal Government from the power sector.
The National Treasurer of the Nigeria Labour Congress, Olatunji Ambali, and the National Deputy President of the Trade Union Congress, Tommy Etim, confirmed the planned protests to The PUNCH in separate interviews on Sunday and insisted that the tariff should go back to the subsidy era.
The labor action is expected to result in the closure of the Abuja headquarters of the Nigeria Electricity Regulatory Commission, the Ministry of Power, and state offices of power distribution companies.
The NERC announced the increase in the electricity tariff for Band A customers at a press briefing in Abuja on April 3, stating that those affected would now pay N225 per kilowatt-hour, up from the previous rate of N68/kWh.
The increase represented a 240 percent rise.
This marked the end of the subsidy for customers in the Band A category, who made up about 15 percent of the total 12.82 million power consumers across the country.
The Federal Government said it would save N1.5tn due to the tariff increase.
The government said the decision took effect on April 3, 2024, and Band A customers would receive up to 20 hours of power supply daily.
However, the House of Representatives, organized labor, the Nigerian Bar Association, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, electricity consumers, and civil society organizations called for the tariff to go back to the subsidy era rates.
The House urged the NERC to immediately suspend the implementation of the new electricity tariff nationwide.
But, during an investigative hearing by the Senate Committee on Power, Minister of Power, Adebayo Adelabu, justified the increase by warning that there would be a nationwide blackout in the next three months if the tariff increase in electricity was not put into effect.
He said this after the Senate Committee, chaired by Senator Enyinnaya Abaribe, rejected the new tariff regime.
“The entire sector will be at a standstill if we don’t raise the tariff. With the current situation, the entire country will be in darkness if we don’t increase tariffs. The increment will take us to the next level. We are also Nigerians. We are also feeling the impact,’’ Adelabu stated.
However, the NLC and the TUC persisted in their call for the reversal of the tariff hike, expressing dissatisfaction with the inconsistent power supply in the country, which they said is affecting economic growth.
Speaking at the International Workers Day celebration in Abuja on May 1, the NLC President, Joe Ajaero, argued that the government cannot set tariffs in a sector that was already deregulated.
The TUC President, Festus Osifo, also criticized the increase, stating, “Forcing Nigerians to pay higher tariffs for non-existent electricity is unethical. Estimated billing is an extortion and robbery against Nigerians.”
The labor unions gave a one-week deadline and warned that they would protest at NERC offices if the electricity tariff was not reverted to the subsidy period. The deadline given by Labor ended on Sunday.
To please the unions, NERC reduced the tariff from 225/kWh to 206.8/kWh, which is around an 8.1 percent decrease.
The commission credited the reduction to the rise in the value of the naira in the official foreign exchange market.
NERC decreases increase
NERC also stated that the adjustment of the 2024 Multi-Year Tariff Order for Band A customers resulted in lower tariffs for all discos.
In a statement announcing the reduction, the commission stated, “According to the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, a revised tariff order for the month of May 2024 has been issued to the 11 electricity distribution companies.
“The commission has taken into account changes in the macroeconomic parameters in the previous month of April 2024 and particularly the appreciation of exchange rates – as a result, the commission has approved a decrease in end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.
“The commission reaffirms its commitment to providing a fair and efficient regulatory system to serve the needs of the Nigerian Electricity Supply Industry.
In a conversation with one of our reporters on Sunday in Abuja, the National Treasurer of the NLC, Ambali, said that the union had fully prepared its members and partners for the protest against the tariff increase.
“We commend the Federal Government for stopping the cyber security levy; however, labor is fully ready for the protests against the electricity tariff increase across the country.
Supporting Ambali, the National Deputy President of the TUC, Etim, stated that organized labor was prepared for the nationwide protests at the NERC offices.
“Of course, Labor is fully prepared for the protests which will begin tomorrow (Monday).
Also, a senior official of the NLC, who spoke anonymously because he was not authorized to speak for the union, said, “Picketing will start today not only at the offices of the National Electricity Regulatory Commission but also at all the distribution companies across the nation.
He mentioned that the mobilization of workers and affiliate unions was ongoing, and that meetings were held on Saturday and Sunday by the NLC and TUC to fine-tune strategies for the labor action.
Labor mobilizes
“We urge the civil societies, organizations, market women, and students to join organized labor because it is a collective battle, and we are all collectively being affected by the harmful government policies,” he stated.
“Together, we can push back. As you can see, we have fought against the cyber security levy and they have agreed to withdraw it.
“If we fight this issue together, we will compel the government to withdraw actions that are against the people. Don’t leave it to the NLC and the TUC, but join us in the struggle so that together, we can compel the government to do what is necessary,” he appealed.
In the meantime, groups from civil society have approved today's (Monday's) confrontation, stating they were dedicated to any action that could help reduce the hardships of Nigerians.
Dr Jackson Omenazu, the Chancellor of the International Society for Social Justice and Human Rights, mentioned that his organization would participate in the demonstrations urged by the labor leaders.
“Consider the hardships faced by Nigerians; the government should make an effort to create policies that will alleviate the suffering of the people and not worsen their situation. The NLC and the TUC have our full support,” he said.
The Civil Society Legislative Advocacy Centre also showed backing for the NERC and the power distribution companies being blockaded.
Mr Auwalu Rafsanjani, the Executive Director of CISLAC, affirmed, “We will join any protest that will help the Nigerian people overcome the suffering caused by Nigerian government policies.’’
He further mentioned, “In fact, CSOs don’t need to wait until Organized Labor calls for protests. We have been requesting a review of government policies that have had a negative impact on the people: inequality, poverty, and corruption.
“We also support the NLC and the TUC in this action. The Nigerian people have suffered enough due to bad government and leaders who seem to be promoting inequality, poverty, corruption, and lack of comfort and social justice.’’
“As civil society organizations, we definitely want to collaborate with all like-minded individuals to ensure that these problems are addressed. Many Nigerians cannot afford proper meals, housing, and education. This is a positive development, and we hope that the government will address this issue,’’ Rafsanjani noted.
The Executive Director of the Rule of Law and Accountability Advocacy Centre, Okechukwu Nwanguma, stated his support for the protests, emphasizing that the government should tackle the concerns raised by organized labor.
“We support the call to protest the tariff increase by the NLC and the TUC,” he said.
