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NLC Urges Reversal of New Tariff Hike for Band A Customers

by Ikenna Ngere
July 5, 2024
in Business News, News
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NLC Urges Reversal of New Tariff Hike for Band A Customers
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The recent increase in the cost that Band A users must pay, which went from N206.80 per kilowatt-hour to N209.5/KWh, has angered the Nigeria Labour Congress.

The NLC charged the federal government of being insensitive and dishonest while calling for the immediate implementation of the new tariff.

The NLC President, Joe Ajaero, said in a statement released on Thursday that the increase in energy rates amounted to the height of conceit and impunity and that it would further impoverish customers and drive away more businesses.

A fresh wave of tariff increases was announced by DisCos on Wednesday.

They claim that the Nigerian Electricity Regulatory Commission’s approval of the increased fee was necessary because of their high operating costs, which were brought on by growing inflation and volatility in exchange rates.

Ajaero wondered why another rate hike was implemented rather than a downward review after the Federal Government had committed to resolving the Band A pricing hike from 68/kWh during the most recent nationwide strike.

Ajaero said, “This increment has come on the heels of unresolved contestations around the insane 250 per cent hike in tariff leading to national paralysis including the shutting down of 300 businesses as per the Manufacturers Association of Nigeria.

“The 250 per cent hike drew the ire of the citizenry and rage of organised labour whose members went on a one-day protest for its unreasonableness and violation of extant rules of tariff hike.”

“We had demanded a reversal.  The only reason that action was paused was a firm assurance from relevant quarters including the National Assembly that the matter would be dealt with quietly,” he mentioned.

The president of the NLC, meanwhile, denounced a further raise rather than a reversal, claiming that this is evidence of the government’s continued insensitivity and insincerity.

“We do not doubt that this frequent crass display of insincerity and insensitivity will pit the people against the government or vice versa,” he stated.

Exchange rate, interest rate, and petrol cost are the three reasons DisCo offered for this rise, according to Ajaero, who further stated that they “underscore our argument that the government and entities in the energy sector are not serious about finding an enduring solution to our energy crisis.”

He emphasised, “Given the further damage this latest wave of increase will do to our economy, we demand an immediate reversal of the hike. It is unjustifiable, unreasonable, and malevolent. Government and DisCos should stop killing the people and the economy.”

Tags: Band A CustomersNew Tariff HikeNLC
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