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‘It’s insensitive’ — NLC slams FG over planned 40% electricity tariff hike

‘It’s insensitive’ — NLC slams FG over planned 40% electricity tariff hike
June 22
18:11 2023

The Nigeria Labour Congress (NLC) says plans by the federal government to increase electricity tariff by 40 percent from July 1, 2023, is “insensitive and callous”.

On Monday, the federal government hinted at removing the N50 billion monthly electricity subsidy in the sector owing to the revenue shortfall.

The development is coming a few weeks after the removal of petrol subsidy which now has petrol retail prices skyrocketing.

Reacting to this in a statement issued on Thursday, Joe Ajaero, NLC president, condemned the intentions of the federal government, saying it reflected an organised indifference to the wellbeing of consumers.


“The massive increase is explained away as a response to the over 100 percent increase in the pump price of premium motor spirit. Details reveal a movement in inflation from 16.9 percent to 22.41 percent (threatening to needle 30), and a shift in the exchange rate from N441 to N750,” the statement reads.

“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. The service providers, in spite of sundry support, have not been able to meet the threshold of 5000 megawatts.

“Coupled with this, there have been surreptitious increases without notice in violation of statutes. The inherent risk in the new regime of tariff is that there is no control, implying that by August, consumers will pay new rates.


“The other risk is that by the time other products 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 the 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.”


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