Electricity tariff hike: More knocks for FG
• MAN, opposition lawmakers, Southern, M’Belt groups say action insensitive ν We’re consulting, will take action soon – NLC
The Federal Government has come under severe criticisms over the 300 per cent hike in electricity tariff for consumers within the Band A Line of the Nigerian Electricity Regulatory Commission (NERC).
A cross section of Nigerians who are currently facing excruciating economic pains, view the decision as insensitive on the part of the government, coming at a time when Nigerians are already grappling with rising cost of living.
The minority caucus of the House of Representatives in a statement by the minority leader, Kingsley Chinda, on Friday, described the hike as insensitive. The opposition lawmakers said the hike in electricity tariff is akin to placing an unbearable burden on citizens, already struggling with the harsh economic situation in the country.
The caucus recalled: “In the United Kingdom, for example, where anti-subsidy proselytisers preach against subsidies, His majesty’s Government has “paid almost 40 billion pounds ($50 billion) in energy subsidies since it began to help households and businesses cope with the surge in power bills after Russia’s invasion of Ukraine…” The caucus charged President Bola Tinubu to prevail on NERC, to rescind this decision and prioritise the welfare of the people.
Similarly, Pan-Yoruba socio-cultural group, Afenifere, described the hike in electricity tariff as exploitative and insensitive, warning that it might lead to revolt if care is not taken. Publicity Secretary of the group, Mogaji Gboyega Adejumo, gave the condemnation in an interview with Saturday Sun on Friday.
“Certain parts in the northern part of Nigeria don’t pay for electricity. Now, Nigerians are not only at the edge, they are being pushed to anger. This may lead to mass revolt. There is no country in this world that does not subsidise.”
The President, Middle Belt Forum (MBF), Dr. Bitrus Pogu, said: “Nigerians are already burdened with the hike in petroleum prices, spiraled into all other sectors of the economy; food items and everything have gone high. The poor Nigerians can, at least, say yes, that electricity is something, which they need to survive.
“Many of the small businesses, and artisans, all need electricity and to increase electricity tariff puts more pressure on the pockets of Nigerians. Mr President needs to have a rethink. It is not a very good thing to do now. The government should have a rethink and not help some people to line their pockets with money and then destroy the economy even further.”
In like manner, chairman, Pan Niger Delta Forum (PANDEF), Senator Emmanuel Ibok Essien, noted that the tariff shouldn’t have been increased at this time because it would increase the cost of production for those who are producing.
“Once the cost of production goes high as the dollar is already high, electricity tariff is very high, it reflects on the end products and end users. You find out that the cost of items would really skyrocket. This is not an appropriate time that the tariff should be increased. The president should look into it again.
“The increase is over three times, from N72 per Kw/h to about N260 per Kw/h, which makes it almost four times the increase. What do you produce? It means that somebody who was paying N720, 000 a month, will now be paying almost 4 million in a month.”
The Alaigbo Development Foundation (ADF) described the removal of subsidy on electricity tariff as a very terrible and unacceptable policy.
National Secretary of ADF, Chief Abia Onyike, who rejected the hike, said: “It is the duty of the government to provide subsidies in all sectors of life to make things better and smoother for the masses and not to further subject the masses to more sufferings.
“It is even more unfortunate that President Tinubu’s administration wants to remove electricity subsidy after the Senate had assured Nigerians that the electricity subsidy will not be tampered with,” he said.
The Organised Private Sector (OPS) flayed the increase in electricity tariff. Frank Onyebu, former chairman, Manufacturers Association of Nigeria (MAN), noted that manufacturers would be the ones to bear the brunt of the tariff hike, at a time when most members of the association are barely keeping afloat.
“We also have to think about the impact of factory closures on government revenue. A shut factory cannot pay taxes. It is in our collective interest as a nation that the government quickly rescinds the very insensitive tariff hike.”
On the contrary, President, Calabar Chamber of Commerce, Industry, Mines and Agriculture, David Etim, noted: “If power is generated efficiently, the entire system will work efficiently. If the system is working properly, things will work well. The funds spent on generating sets and fuel will be channelled to other uses and cost will be saved.
“Our journey is still far. Government is trying to confront the issues. The tariff increase is for good. The most important thing is getting the product we are paying for.”
The President, Igbo National Council (INC), Chilos Godsent, also condemned the increase in the electricity tariff, accusing those behind it of being insensitive to the plight of Nigerians. He also appealed to President Tinubu to reverse the tariff.
He said: “The Federal Government should be mindful of how they take Nigerians for granted with the belief that Nigeria is occupied with a population of docile people and therefore cannot protest or resist the insensitive and obnoxious policies of the federal and state governments.
Spokesperson of Nigeria Labour Congress (NLC), Ben Upah, said the decision on whether Labour would protest the hike would be contingent upon the decision of the appropriate organs of the congress.
He said consultations were “on–going within. You know that this matter is very serious. It will lead to uncontrollable hikes in prices of food and services. It could also, in extreme cases, lead to more closures and loss of jobs and further worsen our national security situation.”
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