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NLC Demands Reversal of New Tariff Hike for Band A Customers

Stephen Akudike by Stephen Akudike
July 5, 2024
in Business, Economy
Reading Time: 2 mins read
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National Protest: NLC To Shut Down Nation Over High Cost of Living Crises
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The Nigeria Labour Congress (NLC) has strongly opposed the recent increase in electricity tariffs for Band A customers from N206.80 to N209.5 per kilowatt-hour. The NLC has called for an immediate reversal of the new rates, accusing the Federal Government of both insensitivity and insincerity.

NLC President Joe Ajaero expressed his concerns in a statement on Thursday, describing the tariff hike as an act of impunity and arrogance. He warned that the increased costs would force more companies out of business and exacerbate difficulties for consumers.

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The new tariff, announced by electricity distribution companies (DisCos) on Wednesday, received approval from the Nigerian Electricity Regulatory Commission (NERC). The DisCos cited rising operational costs due to inflation and exchange rate fluctuations as reasons for the increase.

Ajaero recalled that during a recent national strike, the Federal Government had promised to address the previous hike in Band A tariffs from 68/KWh. He questioned why the next step was yet another increase rather than a reduction.

“This increment follows unresolved issues surrounding the insane 250 percent tariff hike, which led to a national shutdown, including the closure of 300 businesses as reported by the Manufacturers Association of Nigeria,” Ajaero stated.

The NLC President criticized the government’s broken promises, noting that organized labor had paused its protests only after receiving firm assurances from various quarters, including the National Assembly, that the issue would be quietly resolved.

“Instead of a reversal, we are seeing another hike,” Ajaero lamented, arguing that this move further demonstrates the government’s insincerity and insensitivity.

Ajaero dismissed the DisCos’ justification for the increase, which included exchange rate fluctuations, interest rates, and the cost of gas. He emphasized that these excuses highlight the lack of serious efforts by the government and energy sector entities to find a lasting solution to Nigeria’s energy crisis.

“We demand an immediate reversal of this hike due to the further damage it will inflict on our economy. It is unjustifiable, unreasonable, and malevolent. The government and DisCos must stop harming the people and the economy,” Ajaero concluded.

Tags: NLC
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