The Federal Government on Friday reiterated its stance on the 240 per cent increase in tariff for power consumers in the ‘A’ category despite widespread calls for its reversal. It clarified that the subsidized power pricing would be temporary, with a three-year plan aimed at achieving a fully cost-reflective tariff.
However, the decision faced criticism from the Nigeria Labour Congress (NLC), which warned of the negative repercussions of the tariff hike, labeling it as unjust and unpopular. The NLC accused the government of prioritizing the directives of international financial institutions like the World Bank and the International Monetary Fund over the welfare of its citizens.
Benson Upah, Head of Information at NLC, expressed disappointment in the government’s persistence with the unpopular policy, emphasizing the adverse impact it would have on businesses, particularly manufacturers. He criticized the government’s apparent disregard for the concerns raised by various stakeholders, implying that external influences were driving the decision-making process.
Read Also:Â FG Arraigns Leader Of Miyetti Allah For Establishing And Supporting Ethnic Militia Group
The NLC, along with manufacturers and organized labor, opposed the tariff hike, arguing that it would cripple businesses, exacerbate inflation, and impede the growth of small and medium enterprises (SMEs). They highlighted the absence of adequate power supply in Nigeria and demanded a reversal of the decision.
Despite the backlash, the government stood firm on its decision, announcing the commencement of the new tariff regime effective April 3, 2024. However, stakeholders, including the Organized Private Sector, NLC, and the Trade Union Congress, continued to push for a reconsideration of the hike, emphasizing its detrimental effects on the economy and businesses.
