Nigerians are reeling from a 240% increase in electricity tariffs for high-consumption customers, a move that has sparked outrage from labour unions, manufacturers, and opposition politicians.
The government insists the hike is necessary to reduce the unsustainable cost of subsidizing electricity. Power Minister Adebayo Adelabu claims the current subsidy amounts to N2.9 trillion ($6.4 billion) annually, consuming over 10% of the national budget.
However, the Nigeria Labour Congress (NLC) is not buying it. They view the hike as “wicked and unpopular” and are threatening unspecified consequences if the government doesn’t reverse the decision. NLC President Benson Upah accused the government of bowing to pressure from the World Bank and IMF, prioritizing their interests over Nigerians’ well-being.
Manufacturers also oppose the hike, arguing it will cripple businesses and worsen inflation. They point out that reliable power is already scarce, making the high cost even more unfair.
The new tariff structure only applies to Band A customers, typically those receiving at least 20 hours of daily power supply. However, the Abuja Electricity Distribution Company (AEDC) initially tried to apply the hike to all customers, prompting a N200 million fine from the Nigerian Electricity Regulatory Commission (NERC).
The main opposition party, the Peoples Democratic Party (PDP), has joined the chorus of disapproval. Former presidential candidate Atiku Abubakar slammed the hike as poorly timed and lacking a plan to mitigate the hardship it will cause. He called for a review of the power sector privatization and urged the government to prioritize fixing inefficiencies before raising tariffs.
Lawmakers from the minority party in the House of Representatives also condemned the decision, calling it “inhuman” and demanding its reversal. They argue for a focus on improving service delivery and transparency in the power sector before burdening Nigerians with higher costs.
Civil society groups and industry leaders echoed similar sentiments. They criticize the government for prioritizing profit over people’s welfare and failing to address the root causes of the power sector’s problems.
The government defends its position, arguing the subsidy is unsustainable and the hike is necessary to attract investment and improve service delivery. They claim the tariff for Band A customers is still cheaper than alternative power generation using diesel or petrol.
However, with the recent fuel subsidy removal still fresh in their minds, many Nigerians are skeptical. They see the electricity hike as another blow to their already strained household budgets. The coming weeks will likely see continued protests and pressure on the government to reconsider the tariff increase.
