Fakoyejo Olalekan
The plan to increase electricity tariff by 40 per cent from 1 July 2023 has been criticised by the workers union, Nigeria Labour Congress (NLC).
Reacting to the tariff hike on behalf of the group, NLC president, Joe Ajaero, described the increase planned by the Federal Government as “insensitive and callous”.
Join our WhatsApp ChannelHe said despite the excuse for the increase being the hike in inflation, fuel price and foreign exchange rates, they are not enough justification for it.
Ajaero said it is a reckless proposed tariff increase considering the electricity companies have failed in their capacity to provide service, as well as meet the threshold of 5000 megawatts.
The NLC leader said there have been occasions when the electricity companies also violated their statutes through surreptitious increases without notice.
He made this known on Thursday in a statement addressing the hike in tariff, “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.
“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,” Ajaero said.
The head of the labour group stated further: “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.”
