The Federal Government stood firm on Friday, maintaining its decision to implement a 240 per cent hike in electricity tariffs for consumers in the ‘A’ category, despite mounting calls for its reversal and threats from the Nigeria Labour Congress (NLC).
Despite the opposition, the government emphasized that the subsidized power pricing scheme would only be temporary, with plans to transition to a fully cost-reflective tariff within a three-year period.
However, the Nigeria Labour Congress strongly condemned the tariff hike, describing it as unjust and unpopular. The NLC warned the government to brace for the consequences of its decision, attributing the policy to external influences such as the World Bank and International Monetary Fund (IMF).
The Minister of Power, Adebayo Adelabu, defended the government’s stance, stating that the subsidy on electricity for band A consumers was unsustainable, costing the government approximately N2.9 trillion annually. He emphasized that the tariff adjustment was necessary to rationalize government spending and allocate resources to other critical sectors.
Despite criticisms from various quarters, including former Vice President Atiku Abubakar and the Minority Caucus of the House of Representatives, the government remains resolute in its decision, asserting that the tariff hike is essential for the long-term sustainability of the power sector.
In the midst of the controversy, the Nigerian Electricity Regulatory Commission (NERC) fined the Abuja Electricity Distribution Company Plc (AEDC) for implementing the new tariff across all customer bands, contrary to directives. The commission ordered the AEDC to reimburse affected customers and pay a fine of N200 million for non-compliance.
As the debate over the electricity tariff hike continues, stakeholders express concerns about its potential impact on the economy and call for transparency, accountability, and dialogue to address the challenges facing the power sector.
