In a strongly-worded statement, the Nigeria Labour Congress (NLC) has condemned the federal government’s proposed 40% increase in electricity tariff, slated to take effect from July 1. The NLC described the move as insensitive and callous, displaying an apparent lack of concern for the welfare of consumers, particularly those belonging to lower-income groups.
The President of the NLC, Comrade Joe Ajaero, expressed dismay over the government’s decision and urged them to reconsider the tariff hike in the best interest of the masses. He emphasized that the current economic climate in Nigeria, including the rising costs of education in tertiary institutions and privately-owned schools, alongside other impending price hikes, could potentially plunge the country into a Hobbesian existence.
Ajaero’s statement criticized the government’s justification for the tariff increase, which claimed it was necessitated by the significant rise in the pump price of premium motor spirit (pms). He pointed out that inflation had surged from 16.9% to 22.41%, with a potential threat of reaching 30%, while the exchange rate had soared from N441 to N750. Despite these figures, the NLC firmly believed that such economic indicators did not warrant the reckless proposed tariff increase.
The NLC further argued that the service providers had failed to meet the stipulated threshold of generating 5,000 megawatts, making the tariff hike unwarranted. Additionally, the NLC highlighted the surreptitious increases that had been implemented without prior notice, which violated existing statutes and left consumers at a disadvantage.
One of the major concerns raised by the NLC was the lack of control in the new tariff regime. If implemented, consumers would be subject to revised rates by August, with the risk of facing further price hikes from other sectors providing goods and services. This situation would disproportionately impact ordinary citizens, exacerbating their financial burdens.
Addressing critics who had denounced the NLC’s opposition to the tariff increase, Ajaero urged them to reflect on the potential consequences of such a move. He emphasized that market economies, which proponents of market fundamentalism sought to emulate, were equipped with socio-economic safeguards that Nigeria currently lacked. Given this disparity, the NLC firmly advised the government to shelve the proposed tariff hike in the interest of collective safety.
The NLC’s statement has added fuel to the ongoing debate surrounding the proposed increase in electricity tariff. As Nigerians eagerly await the government’s response, concerns over the potential consequences on the already strained economy and the livelihoods of the people continue to grow.
Comments are closed.