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NLC insists on electricity tariff reduction by December, serves notice to FG

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The Nigeria Labour Congress (NLC) has insisted that the Federal Government must by December, implement the agreement to reduce electricity tariffs by N15 per kilowatt-hour.

The NLC, while serving a notice, warned that it would not accept the serial violations of agreements by government.

According to Punch, this disclosure is contained in a statement titled, Gas sale to Gencos should be below $1.50/scf, issued by the NLC President, Ayuba Wabba, on Thursday.

What the NLC President is saying

Wabba said, “It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government of Nigeria and organised labour, hereinafter referred to as the principals, on 28th September 2020.

“Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff.

“The technical committee thus set up on 28th September 2020 had a clear mandate to review several critical issues in the power sector and to suggest reforms that will provide succour to Nigerians over the short and long term.”

The NLC President explained that the technical committee submitted its final report in January, noting that the Federal Government and organized labour met on February 22 and discussed the report.

Wabba in the statement said, “The principals accepted, among other recommendations, that necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu.

“Whereas, the Gencos are required to pay as much as $2.50 per standard cubic feet, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per scf.”

Wabba said the principals resolved that gas companies should be integrated into the Central Bank of Nigeria payment wallet of the Nigerian Electricity Sector Industry to guarantee payments for gas and contract sanctity of Gencos.

The NLC President said, “Consequently, congress demands of the Federal Government to reduce the pricing of domestic gas supply to Gencos to less than $1.50 per scf.

“Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement.”

He added that the congress had thus served notice that the posture of the Federal Government to flout agreements was completely unacceptable and would be resisted.

What you should know

  • It can be recalled that in July 2020, the NLC had said it will mobilise workers to resist any attempts to hike power tariff especially a time Nigerians were still going through some of the worst socio-economic crises caused by the novel coronavirus disease.
  • The organized labour also in January 2021, threatened industrial resistance following the increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC), asking the Federal Government to reverse the increase immediately or face an unprecedented strike action by Nigerian workers.

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