FG Holds Sway on Electricity Tariff Hike Despite Labor Threats


The Federal Government criticized organized labor's opposition to the electricity tariff hike and subsidy removal in the sector on Sunday.

Florence Eke, spokesperson for the Ministry of Power, stated during an interview that Adebayo Adelabu, the Minister of Power, still stands by his explanation for the electricity tariff increase given at the Senate public hearing last Monday. She pointed out that the government does not align with trade unions on the electricity tariff issue and highlighted the excessive burden of the electricity subsidy that the government could not sustain.

Eke's statement was in reference to the two-week ultimatum issued by organized labor, demanding the reversal of the increase in electricity tariff. The Trade Union Congress reiterated its stance on Sunday, insisting on the two-week ultimatum given to the Federal Government to reverse the tariff.

Joe Ajaero, the President of the Nigeria Labour Congress, also opposed the tariff increase, stating that the government cannot regulate tariffs in a sector that is already deregulated. On April 3, during a press briefing in Abuja, the Nigeria Electricity Regulatory Commission announced an increase in the electricity tariff for Band A customers.

Band A customers, who make up approximately 15% of the total 12.82 million power consumers across the country, will now be charged N225 per kilowatt-hour, up from the previous rate of N68/kWh, resulting in a 240% increase. Subsidy on electricity was completely withdrawn from the tariff of customers in the Band A category.

The Federal Government stated that it would save N1.5tn based on the tariff hike. The decision would come into effect on April 3, 2024, and Band A customers would receive up to 20 hours of power supply daily.

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