NLC Reveals Those Responsible For Electricity Tariff Hike

NLC Reveals Those Responsible For Electricity Tariff Hike

The Nigeria Labour Congress (NLC) has pointed out that neither President Bola Tinubu nor the Minister of Power, Adebayo Adelabu, are accountable for the 240 percent tariff hike affecting power consumers in the Band ‘A’ category. According to Benson Upah, the Head of Information at NLC, the driving forces behind this policy are the World Bank and the International Monetary Fund (IMF)….READ ALSO NLC Calls On Government To Simplify Retirement Process For Nigerian Workers

Upah emphasized that the electricity tariff hike, which has been described as cruel and unpopular, is driven by external bodies, and the government must be ready to face the consequences of such decisions.

He stated, “If the government elects to continue with the hike or persists in something that is evil, I’m sure it is equally prepared for the consequences of that evil.”

Highlighting the negative impact of the tariff hike on businesses, particularly manufacturing, Upah stressed that high power tariffs have never supported manufacturing, even in developed countries.

Regarding the government’s stance on the policy, Upah expressed disappointment, suggesting that the Minister of Power and the President might not be fully in control, with the World Bank and IMF driving the decision-making process.

In response to the situation, the NLC warned that Nigerians should brace for further increases in electricity tariffs. Minister of Power, Adebayo Adelabu, announced during a press briefing in Abuja that the recent tariff hike for Band A customers is part of the government’s plan to phase out electricity subsidies entirely. Adelabu explained that the government aims to create an environment conducive for investment by eliminating all subsidies in the power sector.

He further elaborated that Nigeria currently operates under a subsidy pricing regime, where the government covers a significant portion of generation, transmission, and distribution costs.

As discussions continue on the future of electricity tariffs in Nigeria, the NLC’s stance underscores concerns about the potential economic repercussions of such policies and highlights the ongoing debate over subsidy removal in the power sector.

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