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Nigeria’s electricity sector faces fresh turmoil as the National Union of Electricity Employees (NUEE) threatened a work stoppage to protest the recent hike in electricity tariffs. In a statement signed by its president, Mr. Adebiyi Adeyeye, the union condemned the increase and warned of withdrawing its members who would be essential for distribution companies to implement the new rates.
This development comes just days after the Nigerian Electricity Regulatory Commission (NERC) announced a revised tariff structure on April 3rd. The new rates primarily target customers under Band A, who receive a minimum of 20 hours of daily electricity supply. These consumers will see a significant jump in their bills, with the price per kilowatt-hour rising from N66 to N225, a staggering increase of over 230%.
Adeyeye argued that there was nothing wrong with electricity subsidy by government, as leadership of advanced countries also subsidise electricity for people.
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The statement partly read, “It’s not out of place to have the government subsidise electricity. In some advanced countries, they still do that till now. Germany, for example, has a long history of supporting renewable energy resources through feed-in tariffs. The subsidy is paid based on the amount of electricity produced, and it helps to offset the initial cost of installing renewable energy systems.
“Also, the United States has various programs that provide subsidies to low-income households to help them afford their electricity bills. These programs are typically administered by state and local governments, and they can take the form of direct bill discounts or assistance with weatherization measures that can help reduce energy consumption.
“The recent electricity tariff hike is a blatant disregard for the economic struggles of Nigerian workers. Not even in a society where minimum wages are ambivalently doubtful.”
NUEE strongly condemns this decision and demands immediate action to reverse it.
“If the government fails to address the crippling cost of electricity, NUEE will not hesitate to take strong action, including the swift withdrawal of our members expected to be used by DISCOs to impose the tariff hike on the good people, to protect the livelihood of our members.”
The NUEE’s stance adds another layer of complexity to the already tense situation in the Nigerian power sector. While the government justifies the tariff hike as necessary to improve service delivery by enabling distribution companies to invest in infrastructure and procure gas, the union argues that the burden placed on consumers is unreasonable, especially considering the inconsistent and often inadequate power supply.
The potential strike by electricity workers could cripple power distribution across the country, further exasperating Nigerians already grappling with unreliable electricity. The coming days will be crucial as the government and the union engage in negotiations to find a solution that balances the need for investment in the sector with the affordability concerns of electricity consumers.
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