The Federal Government has stood firm in its defense of the recent electricity tariff hike and the removal of subsidies in the sector, despite opposition from organized labor. Florence Eke, the spokesperson for the Ministry of Power, reiterated the government’s stance in an interview with The PUNCH in Abuja, affirming that Minister of Power, Adebayo Adelabu’s justification of the tariff hike remains valid.
Eke emphasized that the government is not aligning with the position of trade unions on the issue of electricity tariffs, citing the unsustainable burden of subsidizing electricity costs. According to her, the government’s decision to increase tariffs is driven by the necessity to alleviate the financial strain posed by the subsidy and to ensure the sustainability of the electricity sector.
The government’s stance comes in response to the two-week ultimatum issued by organized labor, demanding the reversal of the tariff hike. Despite labor unions’ insistence on the ultimatum, the Trade Union Congress reaffirmed its position, maintaining pressure on the government to roll back the tariff increase.
In a similar vein, Joe Ajaero, the President of the Nigeria Labour Congress, criticized the tariff hike, arguing that the government cannot set tariffs in a deregulated sector. Ajaero’s remarks highlight the ongoing debate surrounding the regulation and pricing of electricity in Nigeria’s energy market.
The Nigeria Electricity Regulatory Commission (NERC) announced the tariff hike for Band A customers during a press briefing in Abuja on April 3rd. The decision has sparked controversy and drawn mixed reactions from stakeholders, with labor unions expressing concern over the potential impact on consumers and the economy.
