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Electricity Tariff Hike: FG Plans Meeting as Labour Threatens Indefinite Protest

Written by Jerry Alomatu on May 14, 2024

News Views: 265

The Federal Government is set to convene a significant meeting next week to address the demands put forward by organized labour for the reinstatement of power subsidies and the reversal of the recent increase in electricity tariffs.

However, organized labour has issued a warning, stating their intention to continue the protests indefinitely, indicating that they might resort to drastic measures if the government fails to reverse the tariff hike.

The protests disrupted operations not only at the Federal Ministry of Power but also at the Nigeria Electricity Regulatory Commission and various distribution companies across the nation.

These nationwide protests were sparked by the government’s decision to raise electricity tariffs and eliminate subsidies in the power sector. The Nigeria Electricity Regulatory Commission (NERC) announced the tariff hike for Band A customers, with a substantial 240% increase, resulting in the removal of subsidies for approximately 15% of the total power consumers.

In response to the protests and demands from organized labour, the Ministry of Power has pledged to engage in comprehensive dialogue with all relevant parties to address the issues raised, promising to convene a stakeholder meeting next week.

Despite this assurance, labour unions have issued a one-week ultimatum for the government to reverse the tariff hike. If their demands are not met, they have threatened to escalate their protests into a full-blown action.

During the protests, labour leaders expressed their dissatisfaction with the tariff hike, highlighting the adverse effects on Nigerians already struggling with economic challenges. They demanded a complete reversal of the tariff hike before engaging in any discussions with the government.

Meanwhile, the Chairman of the Nigeria Electricity Regulatory Commission, Sanusi Garba, assured the protesters that the commission would reconsider their demands, particularly focusing on increasing current generation capacity rather than commissioning new generating power plants.

In various states across the country, labour unions shut down offices of distribution companies, including the Ikeja Electricity Distribution Company, the Benin Electricity Distribution Company, and the Ibadan Electricity Distribution Company, among others.

The protests also garnered support from other sectors, including the private sector, which emphasized the importance of open and focused negotiations to address the current economic challenges facing the nation.