Electricity: Manufacturers, Labour Tackle Federal Government Over 240% Tariff Hike, Insist on Subsidy

Manufacturers and organized Labour have kicked against the Federal Government’s 240 percent hike in the tariff payable by electricity users enjoying a 20-hour power supply.

The subsidy on electricity has been withdrawn completely from the tariff payable by power consumers in the Band A category, who constitute about 15 percent of the total number of power users across the country.

The organized private sector, Nigeria Labour Congress, as well as the Trade Union Congress, however, kicked against the hiked tariff for power users, whether it was for those on Band A or not.

They argued that the hike in tariff would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, adding that no place in Nigeria enjoyed up to 20 hours of power supply daily.

The NLC described the decision of the Federal Government to hike the electricity tariff as insensitive and callous.

The NLC’s spokesman, Benson Upah, in an interview with journalists said the government’s decision would further pauperises consumers, especially workers whose wages are fixed and insufficient.

On their part, the Trade Union Congress said the Federal Government was only concerned about revenue generation to the detriment and survival of the citizens.

The TUC’s Deputy President, Tommy Etim said the hike in the electricity tariff from N66/kWh to N225/kWh for those who enjoy electricity supply for 20 hours per day is unacceptable and a recipe for individual unrest.

Also reacting to the development, members of the organized private sector said the hike would lead to job losses, higher cost of operations, and inflation, among other challenges.

The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, said companies would start laying off workers.