Labour shut DisCos offices nationwide, demand reversal of electricity tariff hike
By Seun Ibiyemi
The Organised Labour has demanded for the complete reversal of the power sector privatisation and recovery of all public electricity assets sold.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) made the demands while picketing the headquarters of the Nigerian Electricity Regulatory Commission (NERC) over a hike in electricity tariff on Monday in Abuja.
The protesting workers carried placards with inscriptions such as, ‘We are not generator Republic,’ ‘IMF, World Bank, leave Nigeria Power Sector alone,’ ‘Let the poor breathe. Give us affordable and constant light,’ among others.
NLC President, Mr Joe Ajaero, while addressing journalists said that the privatisation of the power sector was a ‘colossal failure’.
Recall that the NERC had recently announced a hike in electricity tariff across the nation from N65/kwh to N225/Kwh.
The organised labour had rejected the increase in the electricity tariff and therefore called for a reversal.
According to him, “Organised Labour in Nigeria demands the complete reversal of the power sector privatisation and the recovery of all public electricity assets.
“That is which is sold cheap to largely inexperienced, technically deficient and financially challenged private investors.
“As workers are hit hardest by the increase in electricity tariff. Unlike business people, wage earning workers cannot adjust their income when the cost of utilities are increased.
“The stagnancy in wages amidst increases in electricity and refined petroleum products push workers over and beyond the limits of sanity and survival.
“Small and medium scale businesses which accommodate millions of workers in the informal economy are severely affected by the increases in energy cost.
“This has led to the shutdown of businesses, thus blooming Nigeria’s unemployment market,” he said.
He therefore, said that Nigeria workers rejected the recent increase in electricity tariff and the associated upgrading and downgrading of customers from one Band to another.
Ajaero further called on the government to respect the Sept. 2021 agreement with Labour that reinforced in 2023 agreement that the government must halt further increase in the tariff of public utilities until certain conditions were met.
He said that this includes the review of the privatisation exercise, de-dollarisation of gas supply to electricity generation, distribution of pre-paid meters to all electricity consumers in Nigeria, among others.
The NLC president also noted that before the increase in electricity tariff, NERC would have called for a stakeholders meeting for proper consultation.
Also the State Chairman, TUC, Mr Gbenga Ekundayo, on Monday, during the picketing of the National Electricity Regulatory Commission (NERC), and Distribution Companies (DisCos) in Lagos, said the increase in electricity tariffs not only adds to the financial burden of households, but also spells trouble for businesses, particularly in the manufacturing sector.
“With production costs soaring, companies are left with no choice but to pass on these expenses to consumers or face the grim reality of shutting down operations.
“Consequently, this vicious cycle of inflation and unemployment threatens to plunge the economy into further turmoil,” he said.
Ekundayo said that there was need for urgent action to alleviate the burden on citizens and businesses, and steer the economy toward a path of sustainable growth and prosperity.
He said that the government must first reconsider its decision to hike electricity tariffs, taking into account the already precarious economic situation.
“Additionally, efforts should be made to stabilise the exchange rate to mitigate the adverse effects of currency fluctuations on the cost of living.
“Moreover, diversifying the energy mix by ensuring that state governments invest in alternative sources could help reduce reliance on the gained national grid and ultimately lower electricity costs in the long run.
“Furthermore, enhancing efficiency in the distribution and management of electricity resources can lead to cost savings that can be passed on to consumers,” he said.
Ekundayo called for policies aimed at stimulating economic growth and job creation.
He said this was crucial in alleviating the financial strain on citizens.
“This includes incentivising investment, supporting small and medium-sized enterprises, and fostering a conducive business environment that encourages innovation and entrepreneurship.
“It is time for policymakers to prioritise the welfare of the people and implement measures that promote the affordability and accessibility of essential services like electricity,” Ekundayo said.
In her remarks, the State Chairman, NLC, Mrs Funmi Sessi, said that the picketing was not just for workers, but Nigerians in general.
Sessi said, “Injury to one is injury to all; this is an injury to Nigerians.”
She said it was troubling, coming at a time when subsidy on Premium Motor Spirit had been removed, which had affected people’s purchasing power.
“Yet, there is no salary increment; life is becoming unbearable and tough for everyone.
“We must rise up with one voice to say enough is enough,” she said
In addition, the Kebbi State Chairman of the NLC, Alhaji Murtala Usman when the leadership of the NLC and the Trade Union Congress (TUC) picketed the offices of the Kaduna Electric Distribution Company (KAEDCO), and the NERC in Birnin Kebbi on Monday, said the increase in electricity tariff has negative dimensions multiple times.
“Manufacturers will increase prices of goods, transport fares will skyrocket, welders and other end users of electricity will be thrown out of business while many Nigerians will languish in darkness because of inability to pay the increase,” he warned.
Usman said that there was no nation in the world which did not subsidise electricity and petrol, adding that, “Nigeria is an oil producing country and is not an importer of electricity, we generate power domestically.”
“God has endowed us with these resources in abundance, these are the rights of the citizens.”
He reminded the government that petrol and electricity were being generated by public funds and must be accessible to the citizenry cheaply and comfortably.
On the issue of the proposed minimum wage of N615, 000, Usman, said the NLC and TUC considered many variables before arriving at the figure in view of the hyper-inflation in the country.
“We are here to peacefully picket the offices of KAEDCO and NERC for few hours to send signal to the government and the authorities concerned to rescind the decision after which the organised labour would chart the next course of action,” the Chairman said.
Speaking to newsmen in Osogbo during the protest, Abimbola Fasasi, TUC State Chairman, said that the protest was to make a statement and let the Federal Government know that the electricity tariff increment was unacceptable by Nigerians.
“The FG must reverse its decision on electricity tariff increment. We don’t want it at this time.
“The government has to develop and improve on electricity generation and supply.
“How many megawatts is Nigeria generating? They are just pumping money into power without results and they want to heap the expenses on Nigerians.
“We are saying NO to electricity increment and additional burden on Nigerians and that is why we are here today picketing IBEDC offices,” he said.
Fasasi said he expected the labour action to yield results in the next two to three weeks, adding that if there is no reversal, labour will shut down the Nigerian economy with a total strike.
Also speaking, Osun NLC State Chairman, Christopher Arapasopo, said that the position of labour is that the recent increase in the electricity tariff by the NERC should be reversed.
“You will recall that on April 3, NERC announced increase in electricity tariff, and this is killing Nigerians, and Nigerian workers say No to this.
“We ought to enjoy power supply for at least 20 hours, but I cannot recollect the last time power was supplied to us for eight hours.
“Recently we had the issue of fuel scarcity and again we are battling with hike in electricity tariff. The Federal Government has to do the needful.
“The Central Working Committee (CWC) of the labour unions met on April 30, to take a stand against the electricity hike and that there should be picketing of DisCos today.
“We hope that the FG and DisCos will do the needful and reverse the tariff, but if they failed, the CWC will give directive on further steps to take.” he said
Addressing journalists, the Oyo State NLC Chairman, Mr Kayode Martins, said the unions would not backtrack on their demands until the FG reduced the electricity tariff.
According to Martins, it is unfair for the government to increase the electricity tariff when Nigerians are still battling economic hardship caused by the petrol subsidy removal.
He said Nigerians were not enjoying electricity supply, which he described as epileptic.
“Asking them to pay for what they are not enjoying is unfair.
“We are here to salvage the situation for the common man of this country.
“We are tired of all the policies being rolled out by our leaders, and people are finding it difficult to live conveniently as a result of these policies which are not properly laid out and implemented,” he said.
The Oyo State TUC Vice-Chairman, Mrs Ranti Sowemimo, affirmed that Nigerians were paying more for electricity they do not enjoy.
Sowemimo, therefore, called on the FG to reverse the hike to reduce the suffering faced by Nigerians.
Reacting to the protest, the Chairman of NERC, Mr Sanusi Garba commended Labour for its peaceful demonstration in respect of issues affecting the power sector.
According to him, we have taken input from your demands related to the affordability of the tariff issued by the commission, we have also listened to you and we have listened to the concerns of Nigerians.
“I want to assure you that we will make adequate representation on the policy side on the issue of affordability of tariffs.
“We also took note on your call for the diversification of energy sources and I will like to say that the Zukeru 700 mega watt power plant is already on,” he said.
