Labour unions threaten nationwide picketing over electricity price hike

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Nigeria’s labour unions, under the umbrella of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), are poised to begin a nationwide picketing of the Nigerian Electricity Regulatory Commission (NERC) and Electricity Distribution Companies (DisCos) offices on Monday, May 13th, 2024. This action comes in response to the recent increase in electricity tariffs, which the unions deem excessive and a burden on Nigerians.

The dispute centers on the government’s recent decision to partially remove electricity subsidies, leading to a rise in electricity tariffs for consumers. Last month, NERC announced an increase in tariffs for Band A customers from N65 per kilowatt-hour (kWh) to N225/kWh. This hike sparked outrage from labour unions, who argued it would disproportionately impact low-income earners already struggling with inflation.

The NLC and TUC have issued a joint statement demanding a complete reversal of the electricity tariff hike. They also criticize the discriminatory nature of the increase, highlighting the continued existence of arbitrary consumer bands. Additionally, the unions call for a restoration of the legal framework governing the electricity sector, implying a lack of transparency in the recent tariff adjustments.

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“We write to inform you of the picketing action scheduled to take place in the offices of the NERC and Electricity Distribution companies (DISCOS) in all states, including the FCT,” the unions said in a joint statement by NLC’s Ag General Secretary Chris Uyot and his TUC counterpart Anka Hassan.

“The action will jointly take place on Monday, 13th of May, 2024 nationwide simultaneously. Therefore, the two Labour centres are directed to work together to carry out this important action. While counting on your usual cooperation, kindly accept the assurances of our goodwill and highest regards.”

The nationwide picketing could disrupt operations at NERC and DisCos offices, potentially leading to power outages and delays in customer service. The action is also likely to garner significant media attention and public support, placing further pressure on the government to address the grievances of the labour unions.

So far, the government’s response has been limited. While NERC did implement a slight reduction in tariffs following pressure from the unions, it remains significantly above pre-hike levels. The government may attempt to negotiate with labour leaders to avert the picketing or pursue alternative solutions to mitigate the financial strain on consumers.

The success of the labour unions’ action and the government’s eventual response remain uncertain. The picketing’s effectiveness hinges on the level of public participation and the potential disruption it causes. Additionally, the government’s willingness to compromise or implement alternative measures to address the tariff issue will be crucial in resolving the current impasse.

This situation will be closely monitored in the coming days as it holds significant implications for Nigeria’s electricity sector and the broader economic climate.