Despite objections and outcry from various stakeholders, including labour unions and citizens, the Federal Government had remain resolute in its decision to implement the electricity tariff hike.
The decision, which entails a 240 per cent increase in tariffs for consumers in the highest consumption band ‘A’, has sparked outrage among Nigerians, who see it as a burden on already strained households and businesses.
Labour unions, led by the Nigeria Labour Congress (NLC), have also condemned the tariff hike, labeling it as “wicked and unpopular.” They warn of dire consequences and a possible showdown with the government if it persists with the implementation.
Manufacturers, organized private sector groups, and lawmakers have also joined the chorus of disapproval, expressing concerns about the adverse impact on businesses, inflation, and economic hardship for ordinary citizens.
Despite the backlash, the Minister of Power, Adebayo Adelabu, defended the government’s stance, stating the unsustainable cost of power subsidy, which amounted to N2.9 trillion for 2024 alone. He emphasized the need to transition to a full cost-reflective tariff over a three-year period.
However, the implementation of the tariff hike has already faced challenges, with reports emerging of Abuja Electricity Distribution Company Plc applying the new rates indiscriminately across consumer bands, contrary to regulatory directives. The Nigerian Electricity Regulatory Commission (NERC) has fined the company N200 million for non-compliance.
Former Vice President and 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, weighed in on the issue, warning of exacerbated hardships for Nigerians amidst rising inflation and economic challenges.
The minority caucus of the House of Representatives also called on the government to cancel the tariff increment, describing it as inhumane and exacerbating economic hardships.
Civil society groups and industry associations have likewise criticized the tariff hike, denouncing it as insensitive and detrimental to the welfare of Nigerians.
