Grace Omachoko
The ongoing tension between the Federal Government and organized labor over electricity tariffs and power subsidies has escalated, with critical meetings scheduled for next week.
The Ministry of Power, represented by spokesperson Mrs. Florence Eke, announced plans for a stakeholder meeting after labor unions disrupted ministry operations in Abuja on Monday.
This protest is part of a broader nationwide response to the government’s recent decisions to increase electricity tariffs and remove power subsidies.
The tariff hike, announced by the Nigeria Electricity Regulatory Commission (NERC) on April 3, raises rates for Band A customers from N68/kWh to N225/kWh—a 240% increase.
The government claims this measure, effective immediately, will save N1.5 trillion and provide Band A customers with up to 20 hours of daily power supply. However, the hike affects approximately 15% of Nigeria’s 12.82 million power consumers, prompting a strong backlash from labor unions.
Both the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have issued a stern ultimatum, demanding a reversal of the tariff increase by May 12. Failure to comply, they warn, will result in a full-scale labor action.
NLC President, Joe Ajaero criticized the NERC for bypassing stakeholder consultations and highlighted the country’s inadequate power supply, which he argues exacerbates economic hardships for Nigerians.
Amidst these developments, the Permanent Secretary of the Ministry of Power, Mr. Mamman Mahmuda, acknowledged the concerns raised by the National Union of Electricity Employees and emphasized the ministry’s commitment to transparent dialogue.
He assured that the upcoming meeting would address all issues, particularly the alleged lack of consultation.
Despite these assurances, labor leaders remain skeptical. Hakeem Ambali, the NLC’s National Treasurer, emphasized that the Monday protest was a preliminary warning and promised more intense actions if their demands are not met.
Also, TUC’s First National Deputy President, Tommy Etim, echoed this sentiment, insisting that no further engagement would occur until the tariff hike is reversed.
During the protest at NERC’s headquarters, Ajaero underscored the urgency of addressing Nigeria’s power poverty, challenging the commission to present concrete plans for improving electricity generation.
He criticized the commission for creating inflation through its tariff policies and demanded clarity on future power projects, including the potential of the Mambilla plant to generate substantial electricity.
Responding to these concerns, NERC Chairman Sanusi Garba stated that the commission is focusing on enhancing current generation capacity rather than commissioning new plants. He assured that NERC would reconsider the labor unions’ demands and return to the negotiating table.
As the situation unfolds, the impending stakeholder meeting will be pivotal in determining whether the government can find common ground with organized labor to prevent further disruptions and address the country’s pressing power issues.
