Anthony Iwuoma
Organised Labour, yesterday spewed fire over the latest hike in electricity tariff and charged the Federal Government to immediately reverse it or face industrial action, citing inflation and the current exchange rate of N379.4/$1 as of Dec. 29, 2020.
The Nigerian Electricity Regulatory Commission (NERC) had approved the upward review of electricity tariffs approved for the 11 electricity distribution companies.
In a statement, Chairman of NERC, Garba Sanusi, said on Tuesday in Abuja, it adjusted its December 2020 Multi-Year Tariff Order and Minimum Remittance Order by N2 and N4 among categories of consumers.
The agency stated that the increase would commence in June.
However, both the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) in separate reactions kicked against the hike and warned that it would further lead to the collapse of the nation’s wobbling economy.
NLC President, Ayuba Wabba, said: “In the light of the heightened burden that this hike in electricity tariff imposes on Nigerian workers and people, we urge the Federal Government to quickly withdraw this uncanny New Year gift or face an unprecedented industrial resistance by Nigerian workers.
“Before now, many manufacturing concerns and Small to Medium Enterprises (SMEs) were already reeling in the great strain as a result of the negative growth occasioned by the first wave of the COVID-19 pandemic in 2020.
“There is no gainsaying the fact that this tariff hike would sound the death knell for many manufacturing outfits in Nigeria as many of them would resort to either mass lay-off of workers and or direct importation of finished goods.”
Wabba also faulted what he described as contradictory in the NERC communique announcing the tariff hike.
“In one breath, NERC denied any new increase in tariff. In another breath, it announced that electricity tariff would be adjusted from N2 per kilowatt/hour to N4 per kilowatt/hour – a 100% tariff increase. The statement in quick reversals also lumped consumers in Band D and E under the new tariff.
“This volte-face is contrary to our agreement with the government which excluded Band D and E from further increases in electricity tariff. This clearly paints a picture of the deliberate mission by the government to hoodwink and take Nigerians for a ride,” further arguing that the new hike negated the agreement Labour reached with the government in September 2020 would further imperil the local economy, lead to loss of millions of jobs and trigger wider social discomfitures.
In its reaction, the TUC leadership insisted that government must revert to the old price or be willing to accept the outcome of this decision.
“There are many companies that have either closed shops or relocated to neighbouring countries because they cannot afford to pay the last tariff hike yet this government has done another one,” TUC President, Quadri Olaleye, said, adding that the labour centre was disappointed by the hike while negotiations are ongoing over the last hike that became effective from barely two months ago.
“We call on the government to be responsible for once. Nigerians will like to know what we gained from border closures. Insecurity did not stop, neither did it stop the smuggling of rice and others. You don’t just churn out policies without weighing the pros and cons. How many people can afford to pay the last bill to talk less of this recent one?”
