The Nigeria Labour Congress (NLC) has warned the Federal Government against raising electricity tariffs.In a statement, NLC President Joe Ajaero said the projected increase, which is set to take effect on July 1, 2023, is callous, especially in light of the increase in Premium Motor Spirit (PMS) pump price.
“The massive increase is explained away as a response to the over 100% increase in PMS pump price,” he stated. Details show that inflation has risen from 16.9 percent to 22.41 percent (threatening to reach 30 percent), and the exchange rate has shifted from N441 to N750.”
Ajaero, who criticized the data used to support the tariff increase, stated, “The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic.” Despite widespread support, service providers have been unable to fulfill the 5,000 megawatt benchmark. In addition, there have been unauthorized increases without notification, in contravention of statutes.”
He stated that the new tariff’s fundamental risk is a lack of control, meaning that consumers will be paying new prices by August.
“The other risk is that the ordinary person will have been compacted into dust by the time other product or service-providing entities come up with their new prices or rates,” he warned.
“Market economies, which fundamentalists seek to emulate, have in place socio-economic safeguards, which we do not have,” Ajaero said of the supporters of the electricity spike. In light of this, we recommend that the proposed rate increase be tabled for the sake of our collective safety.”