TUC, Manufacturers kick against proposed 65% hike in electricity tariff
…2013 Power sector privatisation yet to yield results — MAN
By Seun Ibiyemi
The Trade Union Congress of Nigeria (TUC) has rejected the proposed 65 per cent increase in electricity tariffs.
This is even as Manufacturers Association of Nigeria (MAN) cautioned the federal government against any fresh increase in electricity tariffs, warning that such a move would harm the competitiveness of Nigerian products and businesses.
TUC position is contained in a communique issued at the end of its first quarter of 2025 National Administrative Council (NAC) meeting held on Thursday in Abuja.
Addressing journalists after the meeting, Festus Osifo, President of TUC, said the NAC, on behalf of the congress, “strongly” condemned the proposed 65 per increase in electricity tariffs.
“It is alarming that the government is considering this hike when the previous increment has already inflicted severe hardship on citizens. This proposed increase is not only ill-timed but also a deliberate act of economic oppression against Nigerians, who are already struggling under unbearable economic conditions.
“Furthermore, the improved service quality promised during the last tariff hike, particularly for consumers under the so-called “Band A” category, has not been realised. Most consumers, regardless of their tariff band, continue to live in perpetual darkness,” he said.
Osifo added that the NAC also examined the planned 50 per cent increase in telecom tariffs and fully endorsed the position of the Nigeria Labour Congress (NIC), in rejecting the move.
The TUC President said that the decision to increase the tariffs was made without proper consideration of its economic impact on the masses.
He reiterated that there must be meaningful engagement to explore alternatives and ensure that any policy adjustments are fair, sustainable, and do not further increase the burden on the struggling citizens.
On the proposed introduction of toll gates, he said that the congress also rejected it entirely.
“While we acknowledge that tolling is a globally recognised method of generating revenue for road maintenance, it is unacceptable to impose tolls on roads that are unpaved, dilapidated, and riddled with potholes.
“The NAC views this as an insult to Nigerians, who are being asked to pay tolls on roads that are in total disrepair. Our highways are death traps, unsafe, abandoned, and filled with potholes. Rather than fulfilling its responsibility to fix and maintain these roads, the government is resorting to extortion.
“The Congress, therefore, demands that all roads earmarked for tolling must first be fixed, properly tarred, and repaired to international standards before any discussion on tolling can be entertained,” he said.
Osifo said NAC also condemned any attempt to suppress unionisation in the private sector, as it is a fundamental right protected by national and international labour laws,
He called on the government to prioritise stakeholder engagement and uphold democratic principles that will promote policies that truly serve the people’s interests.
Also, Manufacturers Association of Nigeria (MAN) has cautioned the federal government against any fresh increase in electricity tariffs, warning that such a move would harm the competitiveness of Nigerian products and businesses.
The Director General of MAN, Segun Ajayi-Kadir issued this warning on Thursday while highlighting the adverse impact of persistent tariff hikes on the manufacturing sector and the broader economy.
Ajayi-Kadir noted that the 2013 privatisation of the power sector had not delivered the intended improvements. He lamented that inefficiencies in the electricity value chain continue to burden consumers, including manufacturers, who cannot pass on the increased costs to already struggling consumers.
“The proposed increase in electricity tariff is inimical to the competitiveness of Nigerian products and businesses. It will exacerbate high production costs, worsen inflation, reduce disposable income, increase unsold inventories for manufacturers, erode profit margins, and lead to further job losses and business closures,” Ajayi-Kadir stated.
He emphasised that manufacturers are already disadvantaged as they cannot transfer these rising costs to consumers grappling with low purchasing power.
Ajayi-Kadir urged the government to reassess the power sector’s performance before considering any tariff hike.
He advised, “The government should commission a review of the DisCos’ performance, assess the impact of previous tariff increases on manufacturers, businesses, and households, critically examine the cost-reflective tariff model, and audit the DisCos’ investment in distribution infrastructure.”
Reflecting on the privatisation of the power sector, Ajayi-Kadir said, “Electricity is a critical input in manufacturing processes, significantly affecting production costs and product prices.
“The 2013 power sector privatisation aimed to enhance energy supply, particularly for industries, but it has not delivered the expected results. It is widely believed that operators in the value chain lack the technical and financial capacity to deliver optimally.”
Ajayi-Kadir emphasised the importance of energy security for industrial development, urging the government to prioritise sustainable and cost-effective energy solutions to bolster industrial growth and economic development.
