Warning From FG: Tariff Increase Mustn’t Disrupt Electricity Sector Overhaul, Labour Told

The Federal Government has cautioned organized labor against obstructing its ambitious transformation agenda for the electricity sector. This admonition came from the Minister of Power, Adebayo Adelabu, during his address to State House correspondents following the Federal Executive Council (FEC) meeting on Tuesday.

On Monday, labor unions staged protests at the offices of the National Electricity Regulatory Commission (NERC) and Distribution Companies (Discos) across the country, protesting the increase in electricity tariffs. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) were among the unions condemning the tariff hike, demanding its complete reversal.

Adelabu, in his remarks to journalists, acknowledged labor’s right to peaceful protest and assured further engagement with the unions. He emphasized the government’s commitment to reaching a peaceful resolution, underscoring the importance of collaboration between the government and labor unions for the success of governance.

He stated, “We cannot prevent them from organizing peaceful protests or presenting their demands. Let me be clear on that. The government, under President Bola Tinubu’s administration, is receptive to feedback. We have taken note of their demands, and we will engage further. I am optimistic that we will reach an amicable resolution with labor because no government can thrive without the cooperation, collaboration, and partnership of labor unions.”

Adelabu highlighted that the majority of those protesting were not directly impacted by the tariff increase, as over 95% still benefit from significant government subsidies, paying tariffs well below the actual cost of electricity generation, transmission, and distribution, which currently stands at around N180. He emphasized that most consumers still enjoy approximately 70% government subsidy, with many paying below N60 for electricity. Therefore, he clarified that the call for a reversal of the tariff hike doesn’t directly affect the majority of protesters.