Nigerian Government Unveils Future Strategy Following Workers’ Protest Against Electricity Tariff Increase

Organized labor picketed offices of all eleven Electricity Distribution Companies and the Nigerian Electricity Regulatory Commission, NERC. Led by Joe Ajaero, NLC president, protests were held at the Ministry of Power and NERC headquarters in Abuja, with the closure of Abuja Electricity Distribution Company offices hindering staff from resuming work. Similar actions were observed in Kwara, Lagos, Kaduna, Plateau, Enugu, Sokoto, and other regions.

Ajaero emphasized the need for NERC to reassess its methodology for tariff increments, citing the surge in headline and food inflation rates to 33.20 percent and 40.01 percent, respectively, in March, attributing them to the tariff hike.

In response, the Nigerian Government expressed readiness to engage in dialogue with organized labor. A Ministry of Power spokesperson, Mrs. Florence Eke, stated that a consultative meeting, convened by Permanent Secretary Mr. Mamman Mahmuda, was scheduled for the following week to address the issue.

However, Nigeria Labour Congress spokesperson Benson Upah contended that the government should have consulted before implementing the April 3 electricity tariff hike. He cautioned that the picketing was a precursor to more significant action if the tariff increase was not reversed.

Recalling the April 2024 announcement by the Nigerian Electricity Regulatory Commission of a 240 percent electricity tariff increase for Band A customers receiving 20-24 hours of power supply, subsequent minor adjustments were made following public resistance.

Yet, the picketing by workers at Discos and NERC suggests that organized labor remains dissatisfied with the government’s partial tariff reduction. Ewetumo A A, a retired staff member of the defunct Power Holding Company of Nigeria, PHCN, stressed the long-overdue nature of the labor protest, highlighting the broader economic repercussions of the tariff hike and urging a more gradual approach to tariff adjustments to prevent further economic instability. Additionally, he suggested exploring public-private partnerships to inject capital into the power sector for infrastructural development.