The hike has ignited strong opposition from both
manufacturers and organized labour. The Nigeria Labour Congress (NLC) and the
Trade Union Congress (TUC) voiced their collective disapproval, emphasizing the
potential consequences for the economy. They argue the increased cost will
cripple manufacturers, exacerbate inflation, and stifle the growth of small and
medium enterprises (SMEs). Additionally, they raise concerns about the actual
availability of the promised 20-hour daily power supply, questioning its
existence anywhere in Nigeria.
Subsidy removal fuels tensions
The government justifies the tariff hike by citing the
unsustainable nature of electricity subsidies. NERC Vice Chairman Musiliu Oseni
explained the need to curb the projected N2.9 trillion expenditure on power
subsidies for 2024. However, the complete removal of subsidies for Band A
customers has drawn criticism. Manufacturers and labour unions warn it will
drive businesses out of operation, further burdening consumers with rising
electricity costs.
Downgrades add to consumer frustration
Adding fuel to the fire, NERC has reportedly downgraded some
customers previously classified under Band A. This means even those who may not
have consistently received 20 hours of power will now face the higher tariff.
The announcement has cast a shadow over the government’s
efforts to improve the nation’s power sector. With growing discontent from key
stakeholders, the coming days may see further developments regarding the
controversial tariff increase.
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