Shelve Electricity Tariff Hike for Collective Safety, NLC Tells FG

Onyebuchi Ezigbo in Abuja

The Nigeria Labour Congress (NLC) has asked the federal government to reconsider its plan to increase electricity tariff by 40 per cent by July 1, 2023.
According to the NLC, if nothing was done to halt increases in tariffs and costs of goods and services, life in the country could be truly unbearable.
A statement signed by NLC President, Joe Ajaero, yesterday, stated that the proposed hike in electricity tariff, was insensitive.

“The plan to increase electricity tariff by 40 per cent by July 1st, is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones,” he said.

Ajaero noted that the massive increase may be coming as a response to the over 100 per cent increase in the pump price of Premium Motor Spirit (PMS).
He said reports have revealed a movement in inflation from 16.9 percent to 22.41 per cent and threatening to hit 30 per cent with a depreciation 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,” he said.
Ajaero, expressed worry that service providers in spite of sundry support from government have not been able to meet the threshold of 5000 megawatts.
In addition, he said there have been surreptitious increases without notice, in violation of statutes.

According to Ajaero, the inherent risk in the new regime of tariff was that there was no control, implying that by August, consumers would pay new rates.
Ajaero said: “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.
“The rate at which they are going is highly combative and combustible. With contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones in addition to other costs/tariffs on the way, life in Nigeria could truly be Hobbesian.

“The market economies which the market fundamentalists seek to emulate, have in place socio-economic safeguards which we do not have.
“In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety,” he added.