Felicia Udeji Reporting
Abuja, Nigeria
The decision made by the Federal Government on Wednesday to increase electricity tariff for consumers in the band A category by 240 percent has been kicked against by the Organised Private Sector, The Nigerian Labour Congress (NLC) and The Trade Union Congress (TUC).
NLC told the Federal Government to prepare for the consequences of the tariff hike, which it described as wicked and inhuman, stressing that since the government preferred to listen to the World Bank and International Monetary Fund, it should prepare to face its wrath.
The Head of Information, NLC, Benson Upah, said “We did say earlier that this tariff hike is insensitive and unpopular. So if the government elects to continue with the hike or persist in something that is evil, I’m sure it is equally prepared for the consequences of that evil”.
The organised sector argued that the hike in tariff would send manufacturers out of business, worsen inflation and stifle small and medium enterprises, adding that there was no place in Nigeria currently enjoying up to 20 hours of power supply daily.
Band A power users are those who get up to 20 hours supply of electricity daily.
At a press briefing in Abuja on Friday, the Minister of Power, Adebayo Adelabu, insisted that the Federal Government would continue with the new tariff regime for Band A consumers despite calls for its reversal.
He said this was because the government could no longer continue paying humongous sums as power subsidy, stressing that subsidy on electricity for 2024 would cost the government about N2.9tn.
The minister said, “We are in the subsidy pricing regime, whereby the government provides a large portion of the cost of producing, transmitting, and distributing power, “It will be very insensitive on our part to force or compel the government to continue to subsidise at the rate of almost N3tn for the power sector alone. We just have to be realistic and considerate.”