The Trade Union Congress of Nigeria (TUC) has characterized the increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC) as a potential trigger for unrest within the country.
Dr. Tommy Okoh, Deputy President of the Trade Union Congress of Nigeria (TUC), expressed strong disapproval of the tariff hike, urging the government to afford relief to the underprivileged.
According to him, “The hike in the electricity tariff from 66/kwh to 225/kwh for people who enjoy electricity supply for 20 hours per day is totally unacceptable and a recipe for unrest.
“This shows clearly that Nigeria is not ready for 24 hours electricity supply. As we speak, you cannot point anywhere in Nigeria that people are enjoying 20 hours of electricity supply, not even at the airport where it is expected for economic reasons.
“We think the government has goofed again especially at this time of socioeconomic challenges where the cost of living is very exorbitant and the salary of the workers remained static.
“Today, we are still battling with the fuel subsidy removal without any corresponding remedy and yet the increase in the electricity tariff without the supply of electricity. This government should know that they were not voted into office for the enslavement of the citizens but to protect and better the lots of the masses. This is an indication that the poor can no longer breathe.”
NERC had previously announced that its recent tariff hike would impact a total of 1,974,385 electricity consumers. Vanguard gathered that this increase aimed to significantly reduce the estimated N2.9 trillion electricity subsidy in the 2024 fiscal year. The hike became necessary due to cash flow constraints arising from the federal government’s inability to fulfill its obligations to the Nigeria Electricity Market.
On Tuesday, NERC raised electricity tariffs for Band A customers by 230 percent, from N68 per kilowatt hour to N225/kWh. Band A customers, receiving an average daily supply of electricity for 20 hours or more, will no longer benefit from federal government subsidies on electricity.
NERC stated on Wednesday that subsidy payments across all bands had become unsustainable. Despite President Bola Tinubu’s freeze of electricity tariffs at December 2022 levels on July 1, 2023, promising to cover the difference in subsidies, the government has yet to make any payments, resulting in a debt accumulation of N3.5 trillion to power generation companies and gas suppliers.
Mr. Musliu Oseni, Vice Chairman of NERC, explained that to ensure only customers receiving at least 20 hours of electricity daily remain in Band A, the number of feeders meeting this threshold has been reduced from 875 to less than 500.
He further clarified that only 15 percent of the 13,162,572 electricity customers nationwide would be affected by the tariff increase, while the remainder would continue paying the old rate until supply improved and they transitioned to the new Band A. NERC expressed optimism that the additional revenue would attract investments into the sector and assured deploying various strategies to ensure customers in Band A received their daily supply hours from electricity distribution companies (DisCos).