The Nigeria Labour Congress (NLC) has questioned the federal government’s plan to increase electricity tariffs by 40 percent from the start of July 2023.

Development Diaries reports that the government had earlier in the week suggested it plans to remove the N50 billion monthly electricity subsidy due to a shortfall in revenue.

Announcing the tariff increase, Nigerian Electricity Regulatory Commission (NERC) said the current Service Based Tariff (SBT) was benchmarked on an exchange rate of N441/$ and inflation of 16.97 percent.

NERC argued that since the value of the naira to the dollar now hovers above N700 and current rate of inflation at 22.45 percent, it was necessary to increase tariffs to mitigate operators’ cost of operations.

In reaction, the NLC described the plan as ‘insensitive and callous’ as it is detrimental to the well-being of consumers.

The NLC President, Joe Ajaero, in a statement, said the plan to hike tariffs should be shelved for the country’s collective safety.

‘The rate at which they are going is highly combative and combustible. With the contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones in addition to other costs/tariffs on the way, life in Nigeria could truly be Hobbesian’, he said.

‘The market economies, which the market fundamentalists seek to emulate, have in place socio-economic safeguards which we do not have. In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety’.

This development is coming a few weeks after the removal of fuel subsidy, and may eventually end all forms of energy subsidy in the country.

Increased electricity tariffs would cause serious problems for households and small businesses, which constitute a significant part of Nigeria’s economy and workforce.

This can threaten the survival of small-scale businesses and lead people to crimes as a means of survival.

Development Diaries believes that an increase in electricity tariff at this time is going to further affect the economy. We call on the federal government, through the Nigerian Electricity Regulatory Commission (NERC), to halt the plan.

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