“Shelve this electricity tariff hike” – NLC warns FG

The Nigeria Labour Congress (NLC) has warned the Bola Ahmed Tinubu-led Federal Government, urging them to abandon their plans of implementing higher electricity tariffs in the country.

In an official statement by NLC President Comrade Joe Ajaero recently,  the organisation expressed deep concern over the proposed 40 per cent increase in electricity tariff scheduled to take effect on July 1st.

The NLC condemned the move, describing it as insensitive and callous, indicating a blatant disregard for the welfare of consumers, particularly those living in poverty.

“The significant increase is being justified as a response to the over 100% surge in the pump price of premium motor spirit (pms). However, when we examine the details, we observe a rise in inflation from 16.9% to 22.41% (with the potential to reach 30%), as well as a shift in the exchange rate from N441 to N750. Nevertheless, we firmly believe that even these figures fail to justify this reckless proposed tariff increase,” stated the NLC.

The NLC emphasised that factors such as consumers’ ability to pay and the quality of service provided are crucial considerations that outweigh any justifications based on market logic.

“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,” the statement partly read.

Additionally, the NLC pointed out that when other product or service providers adjust their prices or rates accordingly, ordinary citizens will bear the brunt of these burdensome costs.

“We would like to urge the advocates of the market economy, who have resorted to hurling insults at the NLC, to examine their conscience. The path they are currently pursuing is highly confrontational and volatile. Considering the impending rise in tertiary institution fees, increases in privately-owned educational institutions, and the forthcoming surge in other costs and tariffs, life in Nigeria could truly become Hobbesian,” warned the NLC in its statement.

The NLC highlighted that the market economies which proponents of Market Fundamentalism seek to emulate have in place socio-economic safeguards that Nigeria currently lacks.

In light of this disparity, the NLC says that the proposed tariff hike should be set aside to ensure the collective safety and well-being of Nigerians.