Labour Unions Reject Electricity Tariff Hike, Threaten Nationwide Protest

The Nigeria Labour Congress (NLC) has vehemently opposed the Federal Government’s proposed electricity tariff increase, vowing to mobilise workers and citizens for nationwide protests.

The union condemned the planned hike, labeling it “economic violence against the working class and the broader Nigerian populace.”

Supporting this stance, the National Union of Electricity Employees (NUEE) also warned against the tariff increment, arguing that Nigerians should not be paying for an unreliable power supply.

In a communiqué issued after its National Executive Council meeting in Yola, Adamawa State, on February 28, 2025, the NLC rejected what it termed a “sham reclassification” of electricity consumers by the Nigerian Electricity Regulatory Commission (NERC). The union accused the Ministry of Power and NERC of manipulating consumer categories under the pretense of service improvement, while actually worsening economic hardships.

“The ruling elite, acting as enforcers of global monopoly capital, are determined to further deepen the misery of the Nigerian people through incessant tariff hikes, increased taxation, and relentless economic strangulation,” the communiqué stated.

The NEC resolved that “any attempt to impose additional electricity tariffs would be met with mass resistance.” It instructed its National Administrative Council to commence immediate mobilisation for protests, warning that the government must not underestimate public frustration.

Beyond electricity tariffs, the NLC also expressed concerns over the recent 35 per cent hike in telecommunications tariffs. While an agreement with the Federal Government reduced the initially proposed 50 per cent increase to 35 per cent, the union remains skeptical about the government’s commitment to maintaining this limit.

The NLC warned that if the new telecom tariffs, set to take effect on March 1, 2025, deviate from the agreed terms, it would take necessary actions to enforce compliance.

The union emphasised that Nigerian workers should not be forced to shoulder the consequences of inefficiencies in governance and corporate operations. This stance was echoed by power sector workers, who rejected the consumer reclassification and criticised the move as an exploitative scheme to extract more money without delivering better services.

NUEE strongly opposed the government’s justification for the tariff hike, arguing that it would lead to greater economic distress. It particularly condemned Minister of Power Adebayo Adelabu’s claim that the increase was necessary to boost liquidity in the power sector, questioning whether the minister was assuming regulatory responsibilities meant for NERC.

Dominic Igwebike, acting General Secretary of NUEE, stated, “The National Union of Electricity Employees, as a critical stakeholder in the power industry, cannot remain silent without presenting our stance and proposing viable solutions.”

He recalled that while the 2024 tariff hike was initially applied only to Band A consumers—who constitute 15 per cent of users but consume 40 per cent of the nation’s electricity—the financial burden eventually fell on the general public through increased costs of goods and services.

“We raised critical questions in our April 14, 2024, publication: Who are the Band A consumers? What do they do? Who ultimately bears the cost of the electricity hike?

“The general public will be most affected. They are the end-users of Band A products and services, meaning additional costs will be passed down to them, further eroding their already dwindling purchasing power,” the union stated.

Rather than prioritising a tariff increase, NUEE urged the Minister of Power to focus on improving the efficiency and reliability of the power sector.

While acknowledging the financial difficulties facing the power sector, NUEE criticised Adelabu’s approach, arguing that he appears more focused on exacerbating economic hardship rather than addressing sectoral inefficiencies.

The proposed tariff adjustment seeks to align rates for customers in Bands B and C with the N206/KWh currently charged to Band A consumers. However, this proposal has met strong resistance from power consumers and the Organised Private Sector, who have questioned the government’s continued policy of price increases across multiple sectors of the economy.