Labour Warns of Indefinite Protest
The Federal Government is scheduled to convene a significant meeting next week to address the demands made by organized labor concerning the restoration of power subsidies and the reversal of the electricity tariff hike. This information was disclosed by Mrs. Florence Eke, the spokesperson for the Ministry of Power, to newsmen, following disruptions by labor unions at the ministry’s Abuja offices on Monday.
Despite this development, organized labor has issued a warning of prolonged protests, indicating a readiness to escalate actions if the government does not heed their demands regarding the tariff hike reversal.
The protests led to a standstill at the Federal Ministry of Power, the Nigeria Electricity Regulatory Commission, and disrupted operations at distribution companies nationwide.
The nationwide protests were ignited by the Federal Government’s decision to raise electricity tariffs and withdraw subsidies from the power sector.
The Nigeria Electricity Regulatory Commission (NERC) announced the tariff increase for Band A customers during a press briefing in Abuja on April 3, stating that affected customers would now pay N225 per kilowatt-hour, marking a 240 percent hike.
The move signified the removal of subsidies from the tariffs of Band A customers, constituting about 15 percent of the total 12.82 million power consumers nationwide. The government claimed it would save N1.5 trillion through this decision, effective April 3, 2024, promising Band A customers up to 20 hours of daily power supply.
The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) had given NERC until May 12 to reverse the tariff hike or face labor action.
Regarding efforts to address the protests, Ministry of Power spokesperson Florence Eke mentioned that the Permanent Secretary, Mr. Mamman Mahmuda, acknowledged the concerns of the National Union of Electricity Employees regarding insufficient consultation before implementing the new tariffs. The ministry pledged to hold a stakeholder meeting the following week to address these issues transparently.
Despite these assurances, labor unions issued a one-week ultimatum for the tariff hike reversal, threatening further action if their demands were not met.
At the heart of the protests was the discontent over the tariff hike’s economic burden on Nigerians and the perceived lack of engagement with stakeholders before its implementation.
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In response to the protesters’ demands, the NERC Chairman, Sanusi Garba, pledged to reconsider their concerns, promising actions to mitigate the impact of the tariff hike and address grievances about the distribution sector’s governance.
However, protesters remained resolute, demanding a complete reversal of the electricity tariff hike.
Labor unions across various states, including Lagos, Delta, Ekiti, Osun, Kaduna, and others, staged demonstrations, blocking offices of distribution companies and regulatory agencies.
The labor actions reflect widespread dissatisfaction with the government’s economic policies, particularly in the energy sector, amidst prevailing economic challenges faced by Nigerians.
