NLC slams Nigerian govt over plans to increase electricity tariff by 40%

The federal government’s proposed increase in energy rates by 40% starting July 1 has been criticised by the Nigeria Labour Congress (NLC) as being insensitive and heartless.

In a statement released on Thursday by its president, Comrade Joe Ajaero, the NLC urged the government to abandon the proposed tariff increase for the sake of the general public’s safety.

Read Also: Nigerians spend N247.33bn on electricity in three months, supply drops

The statement read: “The plan to increase electricity tariff by 40 percent by July 1st is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones.

“The massive increase is explained away as a response to the over 100 per cent increase in the pump price of premium motor spirit (pms).

“Details reveal a movement in inflation from 16.9% to 22.41 (threatening to needle 30), and a shift in exchange rate from N441 to N750.

“We believe not even these figures are a justification for this reckless proposed tariff increase.

“The issue of capacity to pay and quality of service delivery are not only germane but superior to any rationalisation by market logic.”

The NLC contended that there have been increases without notice in violation of statutes.

“The service providers in spite of sundry support have not been able to meet the threshold of 5000 megawatts.

“Coupled with this, there have been surreptitious increases without notice in violation of statutes.

“The inherent risk in the new regime of tariff is that there is no control, implying that by August, consumers will pay new rates.

“The other risk is that by the time other product or service-rendering entities come up with their new prices or rates, the ordinary person would have been compacted into dust.

“We would want to advise apostles of the Market who have called NLC all sorts of names to check their conscience.”

While electricity tariff review (increase or decrease) is a bi-yearly exercise as provided for in the Multi-Year Tariff Order (MYTO) schedule in the sector, the expected increase is not unconnected with the deregulation of the foreign exchange (Forex) market by the Central Bank of Nigeria (CBN).

Under the MYTO 2022, operators sourced forex at N441 to a dollar for purchase of equipment and especially gas needed for operations, but with the floating of the exchange rate, which exchanged for over N700 to a dollar, the limit of exchange is no longer feasible.

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