Electricity tariff hike: FG convenes meeting as Labour threatens indefinite protest

14th May 2024

The Federal Government will next week hold a crucial meeting to address the demands by organised labour for the restoration of the power subsidy and the reversal of the hike in electricity tariff.

The spokesperson for the Ministry of Power, Mrs Florence Eke, disclosed this to The PUNCH, hours after the labour unions disrupted activities at the ministry in Abuja, on Monday.

However, organised labour has threatened to continue with the protest indefinitely, stressing that it might take drastic action should the government fail to reverse the tariff hike.

The protests paralysed activities at the Federal Ministry of Power, and the Nigeria Electricity Regulatory Commission and also disrupted the operations of the distribution companies across the country.

The nationwide protests were triggered by the Federal Government’s decision to raise electricity tariffs and remove the subsidy from the power sector.

The NERC announced the hike in the electricity tariff for Band A customers at a press briefing in Abuja on April 3, revealing that those affected would pay N225 per kilowatt-hour, up from the previous rate of N68/kWh.

The hike represented a 240 per cent increase.

The development marked the removal of subsidy from the tariff of customers in the Band A category, who constituted about 15 per cent of the total 12.82 million power consumers across the country.

Based on the tariff hike, the Federal Government said it would save N1.5tn.

The government stated that the decision took effect on April 3, 2024, adding that Band A customers would enjoy up to 20 hours of power supply daily.

The Nigeria Labour Congress and the Trade Union Congress of Nigeria had earlier given the NERC until May 12, to reverse the hike or face labour action.

Speaking to one of our correspondents on the moves to contain the protests, the spokesperson for the power ministry, Eke, said that the Permanent Secretary in the ministry, Mr Mamman Mahmuda, acknowledged the National Union of Electricity Employees’ concerns regarding the lack of sufficient consultation before the implementation of the new tariffs.

She said the ministry was committed to transparency and would engage in a comprehensive dialogue with all relevant parties to discuss the issues raised.

“The union was at the Power House today and they were addressed by the Permanent Secretary Ministry of Power. He assured that the ministry would call for a stakeholder meeting by next week where all issues will be addressed because one of the points they raised was that there was not enough consultation before the tariff was increased. The permanent secretary said as policymakers, the ministry would invite the stakeholders by next week,’’ she said.

But unimpressed, the unions issued a one-week ultimatum to the Federal Government to reverse the new electricity tariff.

The National Treasurer of the NLC, Hakeem Ambali, told The PUNCH that the Monday protest was a one-day event, adding that should the government fail to reverse the tariff hike, the unions would embark on “a full-blown action.’’

“The protest is a one-day warning action. If after a week nothing happens, labour will go into full action,’’ he warned.

In the same vein, the First National Deputy President of the TUC, Tommy Etim, said there would not be any engagement with the government until the tariff hike is reversed.

TUC wants reversal

“We have passed our message across and we are sure that they have heard us. However, before we have any engagement with any stakeholder, the current hike must be reversed totally. That is our demand.”

Addressing protesters and the NERC management at the commission’s headquarters in Abuja earlier, the President of the NLC, Joe Ajaero, said Nigerians were wallowing in power poverty given the abysmal low supply of electricity.

Ajaero noted that the electricity supply generated by Nigeria was not even enough for Lagos which is just one state in Nigeria.

He also faulted the move by the NERC to hike tariffs without engagements with stakeholders in the power sector.

He said, “We are here on a peaceful protest having written so many letters to NERC to remind them (NERC management) that they cannot increase tariffs without meeting with Nigerians. We reminded them that the process of increasing tariffs requires that they meet with all stakeholders including labour.

“We do not know where this current tariff is coming from. NERC is not oblivious to the fact that Nigeria is wallowing in poverty. Nigeria is down the line as one of the countries in the world that are poor in terms of power supply.

“What Nigeria is generating today is not enough for Lagos alone and it is bad enough for you now to tell us that some Nigerians are bigger than the others. It is bad enough for you to say some Nigerians will get 20 hours while other Nigerians will get two hours.”

The NLC president challenged the commission to tell Nigerians the power plant it planned to construct before the end of the year, noting that the Mambilla plant could generate over 3,600 MW of electricity if functional.

He further said that the NERC could not continue to charge tariffs without availability and accessibility to power, adding that the commission was creating inflation.

In his response, the NERC Chairman, Sanusi Garba, said the commission was focused on increasing current generation capacity rather than commissioning new generating power plants, as demanded by organised labour.

He pledged that the commission would go back to the ‘drawing board’ concerning the demands made by organised labour.

“We have taken note of all you have said particularly on the affordability of tariffs. We have listened to you and the concerns of Nigerians.

“We also noted clearly what Comrade Ajaero said about energy sources and I would like to say that the new Zungeru power plant is already generating over 600 megawatts and we are also working hard to ramp up solar generation in such a way that tariff will start to come down.

“Comrade Ajaero also made remarks about banks sitting on the boards of distribution companies. The NERC had earlier given deadlines to all the banks to exit from the boards of distribution companies because we want proper investors on the boards of these companies. We have noted your concerns and we will go back to the drawing board,” the NERC boss assured.

On the demand for tariff hike reversal, the NERC chairman disclosed that the distribution companies had been directed to implement a certain cap on estimated billings and that customers could report DisCos who violated the order.

However, the protesters dismissed his soothing words, chanting, “No, No, reverse the hike; we demand a total reversal of the electricity tariff hike.”

Speaking at the power ministry during the protest, the National Union of Electricity Employees raised the alarm over the safety of its workers, whom it said faced daily threats to their lives due to the recent hike in electricity tariffs.

Electricity workers

The president of the union, Adebiyi Adeyeye, criticised the tariff hike, stating, “You asked my members to accept a price increase of 300 per cent, yet their salaries have not increased even by one per cent. Where is this done?

“My workers are facing threats everywhere, and now the reality is evident. People cannot afford this financial burden.”

He called on the government to reverse the tariff hike within 24 hours, warning, “If this is not changed by tomorrow, they’ll witness further action.”

Asked if the union would shut down the national grid, Adeyeye said, “I can’t confirm that there is any plan to shut down the national grid. We have not made any directive towards that, nothing like that from my desk.’’

Across the country, the protesters blocked Discos’ offices in Lagos, Delta, Ekiti, Osun, Kaduna and other cities.

In Lagos, the workers were sighted at the corporate headquarters of the Ikeja Electricity Distribution Company, singing and calling for the reversal of the Band.

The same scenario played out in Delta State as the unions shut down the NERC and BEDC offices in the state.

Speaking to The PUNCH shortly after the exercise, the NLC Chairman in the state, Goodluck Ofobruku, accused the government of “strangulating Nigerians.’’

He said, “We are not protesting but we are only shutting down NERC and Disco offices because of the removal of so-called electricity subsidy.

“The government want to strangulate Nigerians, whenever, they are looking for money, they will increase prices of goods and services which we are not getting the value. So, we have locked NERC and BEDC offices in Delta State.”

In Oyo, protesters stormed the office of the Ibadan Electricity Distribution Company and halted their operations.

Some policemen were on hand at the company to prevent a breakdown of law and order.

At the Osogbo Regional head office of the Ibadan Electricity Distribution Company, the protesting labour leaders dispersed a handful of workers that resumed for duties.

The protesters also went to the NERC office at Alekuwodo Area of Osogbo, where a protest was held against the hike in electricity tariff.

Led by the Osun NLC and TUC chairmen, Christopher Arapasopo, and Abimbola Fasasi, the protesters also targeted some offices of the electricity distribution company within Osogbo metropolis where they held the protest.

Speaking to one of our correspondents, the Osun TUC Chairman, Fasasi said, “It is the height of insensitivity on the part of the government. We won’t allow it at this particular point in time when people are going through a lot of hardship.

“Things are expensive. We are all struggling to stay alive amid economic hardship. And despite all that, the government still hiked the tariff. We won’t allow it. They should reverse it. If the hike is not reversed in a few weeks, it will lead to a total strike.”

The labour leaders in Ekiti State similarly picketed the NERC along Iworoko Road in Ado Ekiti and Benin Electricity Distribution Company at Ajilosun, Ado Ekiti.

The NLC and TUC members marched to the two offices to register their displeasure over the tariff increase.

The NLC State Chairman, Kolapo Olatunde, said, “We did the needful; we were at the NERC office early in the morning and in the afternoon at the BEDC office. We shut the places and complied with the national directive that we would not want a hike in the price of electricity in Nigeria.

Protests at Discos

“We enjoin other people to protest the proposed hike in the tariff of the power supplied to our people. The removal of subsidy has caused a lot of hardship and if this one also is allowed to go, there will be a lot of hardship to our people.’’’

In Kaduna, the protesters stormed the headquarters of the Kaduna Electricity Distribution Company along the busy Bank Road by Ahmadu Bello Way, as early as 6am.

They carried placards and chanted solidarity songs as they laid siege to the office.

The labour members led by Kaduna NLC and TUC chairmen, Ayuba Suleiman and Alhassan Danfulani, called for an immediate reversal of the tariff.

Speaking with The PUNCH, Suleiman said organised labour was against alleged segregation in the power sector through class differentiation in supply.

He urged the Federal Government to also reverse the privatisation of the distribution sub-sector of the electricity industry.

“NLC and TUC are saying a capital NO to segregation in the rendering of services of electricity in Nigeria. We see no reason why somebody will be enjoying 20 hours of supply while others are taking like 10 hours.

“We want to inform the world and Nigeria that privatization has failed because we are paying for darkness. We are paying for light but we are given darkness in return,’’ the labour leader noted.

On his part, the TUC chairman described as unfortunate the increased power tariff.

“When you increase the cost of electricity, every goods and services will increase and by extension, every Nigerian will be affected. We are not through with the fuel scarcity yet before the hike in electricity tariff was announced,” Danfulani added.

The unions also took their protest to the Ibadan Electricity Distribution Company office, Leme, Abeokuta, as well as the NERC office in Ibara GRA, Abeokuta, Ogun State.

They blocked the entrance of the two offices, disrupting official activities.

Speaking with journalists, the TUC Chairman, Akeem Lasisi, noted, “We all woke up on the 3rd day of April to hear the insulting increase of electricity tariff to N225 kilowatt/hour without consulting the major stakeholders in the power sector.

“As workers, we are totally against this because our salary remains stagnant, the exchange rate, school fees, house rent, food items transport fare, etc are all on the increase while our salary is begging for an upward review.

“A Disco company that could not successfully distribute the prepaid meter to all the households in the country suddenly woke up to increase the electricity tariff. We say a capital NO.’’

The NLC Chairman, Ademola Hammed-Benco, described the hike in electricity tariff as anti-human, insensitive and unfriendly to the workers.

“While waiting for the new living wage which has not come to reality, they are now increasing the tariff of electricity; it is uncalled, it is appalling.

“We are using this opportunity to express our displeasure and to tell President Bola Tinubu that as he has reverted the cyber security levy, he should also compel the Nigerian Electricity Regulation Commission to do the same,’’ he appealed.

The protest was also recorded in Ilorin, Kwara State, where the labour unions shut the gates of the Ibadan Electricity Distribution Company.

The protesters stormed the IBEDC offices in Challenge and the Baboko market areas as early as 7am and prevented access to the buildings.

The Chairman of NLC in Kwara State, Muritala Olayinka, said the IBEDC offices would remain closed until there is a counter-direction from the NLC headquarters.

The unions also picketed NERC and Disco offices in Ebonyi, Plateau, Kogi, Ondo, Benue, Sokoto and other states.

Customers were barred from entering the Jos Electricity Distribution Company located along Otukpo Road, Benue State, while the demonstration lasted.

Led by the state chairman of NLC, Terungwa Igbe, the team visited the branch offices of JED company located at Kwararafa quarters, Ankpa road, North Bank and others within the Makurdi metropolis and shut down their offices.

Speaking with The PUNCH, the Director-General of the Nigeria Employers’ Consultative Association, Mr Adewale Oyerinde, said the organised private sector looks forward to an open, focused, and engaging negotiation.

“The current economic situation, coupled with dwindling business and household fortunes will play a major role in how the negotiations will evolve.