Connect with us

News

ELECTRICITY: NLC, Manufacturers, CSOs Reject Electricity Tariff Hike.

Published

on

Spread the love

The Nigeria Labour congress, Manufacturers and some civil  society Organisations CSOs have kicked against the Federal Government’s 240 per cent hike in the tariff payable by electricity users enjoying a 20-hour power supply.

 

 

They insisted on the electricity subsidy, warning that its removal would send manufacturers out of business and worsen inflation.

 

 

The subsidy on electricity has been withdrawn completely from the tariff payable by power consumers in the Band A category, who constitute about 15 per cent of the total number of power users across the country.

 

 

The government announced the hike in the electricity bill at a press briefing in Abuja by NERC on Wednesday, adding that those affected would now pay a tariff of N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase. The government declared that the decision took effect from Wednesday (yesterday).

But the organised private sector, Nigeria Labour Congress, as well as the Trade Union Congress, kicked against the hiked tariff for power users, whether it was for those on Band A or not.

 

 

They argued that the hike in tariff would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, adding that no place in Nigeria enjoyed up to 20 hours of power supply daily.

 

 

Band A power users are those who get up to 20 hours supply of electricity daily and paid about N68/kWh before the implementation of this latest order by the Federal Government through NERC.

The Vice Chairman of NERC, Musiliu Oseni, told journalists in Abuja that the government could not sustain subsidy on electricity and had to devise ways to cut down the about N2.9tn that would be spent on power subsidy this year.

 

 

He explained that customers on Band A represented 15 per cent of the over 12.82 million registered electricity consumers across the country, adding that the commission had also downgraded some customers on this band.

 

Discos feeders downgraded

 

Oseni said the downgrading of some Band A customers to Bands B and C was because of the non-fulfillment of the required hours of electricity provided to them by power distribution companies in their respective franchise areas.

 

He said NERC was able to discover this after deploying technology to ascertain the rate of power supply from the feeders of the Discos meant for Band A power users.

 

“And on that basis, the commission has decided that many of the feeders that the Discos brandish as Band A feeders are not meeting the Band A service, and as such the feeders have been downgraded immediately as a way of protecting consumers.

 

 

“We have over 3,000 Discos feeders. There are over 875 Band A feeders, but upon reviewing the feeders’ performance, the commission has reduced it to under 500 feeders now, which qualify as feeders that currently meet the 20-hour average service.

 

 

“So when you look at that concerning the over 3,000 feeders that we have, it shows that we have just 17 per cent of the total feeders of the distribution companies now qualified as Band A feeders.

 

 

“And when you look at where those 17 per cent feeders critically, it is estimated that just under 15 per cent of customers are benefiting from them, or are currently connected to those feeders, meaning that we have 17 per cent of the total distribution feeders or less than 15 per cent of customers currently benefiting from the service,” Oseni stated.

 

 

He stressed that based on this, “the commission has decided that only the 17 per cent feeders and less than 15 per cent customers will be affected by any rate increase that the commission will approve for the distribution companies.

 

 

“Therefore the commission has issued an order, which is titled April 2024 Supplementary Order, which is supplementary to the order issued in December 2023 effective January 2024.

 

 

“So the April Supplementary Order takes effect from today and in that order, the commission has approved a rate review of N225/kWh for just under 15 per cent of the customer population in NESI. So that means that less than 15 per cent of the customers will be affected.”

 

 

He further noted that many customers previously classified as Band A power users would not be affected because they hardly get a daily average power supply of up to 20 hours.

 

 

Oseni said consumers affected by the latest tariff hike would henceforth pay their power bills completely by themselves, as the applicable subsidies on Bands B, C, D, and E would not be enjoyed by them.

He noted that these Band A customers had almost all the facilities required for the supply of electricity to their domains for 20 hours daily.

 

 

He, however, noted that about 20 per cent of these Band A customers were not metered, and explained that they would now receive a high concentration in terms of metering by the Discos.

 

 

“This, however, does not mean that customers in other bands have been neglected, no. Rather, the Discos will have to provide meters to this category of Band A customers fast, since their tariff is now N225/kWh,” the NERC vice chairman stated.

 

 

On the effect of subsidy in the sector, Oseni said it had been affecting the payments being made to power generation companies, adding that this “led to a situation whereby the Gencos were unable to make payments for gas.

 

 

“That also resulted in the reduction of gas supply for power generation because there is competitive demand for gas. You have so many other companies that require gas and can pay for it.

 

 

“So these issues have compounded the performance of the sector and that led to the dip in power generation that we experienced recently.”

 

 

He further noted that the recent increase in the price of gas for power generation from $2.28/mmbtu to $2.42/mmbu also warranted a hike in the cost of tariff, particularly for Band A customers.

 

Labour kicks

 

However, the NLC described the decision of the Federal Government to hike the electricity tariff as insensitive and callous.

 

 

The NLC’s spokesman, Benson Upah, made this known in an interview with one of our correspondents.

 

He said, “The government’s decision is not only insensitive, it is callous. It further pauperises consumers, especially workers whose wages are fixed and insufficient.

 

 

“It similarly makes the operating environment more hostile for manufacturers with the potential for an astronomical rise in the cost of goods and services or the worst case scenario, more closures and loss of jobs.

 

 

“The only people who stand to gain from this mindless social violence against the people are the World Bank and IMF (International Monetary Fund).”

 

 

On their part, the Trade Union Congress said the Federal Government was only concerned about revenue generation to the detriment and survival of the citizens.

 

The TUC’s Deputy President, Tommy Etim, s said, “The government is being insensitive to the plights of citizens. I think they believe so much in revenue generation to the detriment of the survival of the citizens. Let me state that the hike in the electricity tariff from N66/kWh to N225/kWh for those who enjoy electricity supply for 20 hours per day is unacceptable and a recipe for individual unrest.

 

 

“This shows clearly that Nigeria is not ready for 24-hour electricity supply. As we speak, you cannot point anywhere in Nigeria that people are enjoying 20 hours of electricity supply, not even at the airport where it is expected for economic reasons. I think that the government has goofed again, especially at this time of socioeconomic challenges where the cost of living is very exorbitant and the salary of the workers remained static.”

 

 

Also reacting to the development, members of the organised private sector said the hike would lead to job losses, higher cost of operations, and inflation, among other challenges.

 

 

The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, said companies would start laying off workers.

 

 

“Well, there would be losses for companies that can’t cope, but in terms of percentage, it is very early to make those projections. We are hoping that members would go back to the drawing board, look at their projected cost of operations, and look at the level of losses they can accommodate or the reduction of profit they can accommodate.

 

 

“And what then happens is that they would have to make some decisions about scaling down operations to cut their losses, which may involve firing people. They may also try to increase prices where their products have a very strong demand. But the bottom line is that we are going to see a lot of our members recording more losses or reduced profits. So that is the primary thing,” Idahosa said.

 

 

He added, “They may decide to fire people that are not critical to operations. They may start with the non-essential staff. A lot of companies are now going on to part-time, offsite, and temporary employment and outsourcing jobs instead of hiring full-time workers. So you are going to see the loss of full-time jobs, loss of part-time jobs, and even the halt in employment.’’

 

 

Idahosa said the move would rapidly increase the operational cost of LCCI members.

 

 

Also, the Head of Corporate Affairs, Small and Medium Enterprises Development Agency, Moshood Lawal, said the hike in tariff would warrant a high rate in the running of businesses.

 

 

“It is already happening now. Small businesses are already experiencing a high rate of running businesses. So it will lead to more higher cost of running a business and prices of commodities are going to go up.

 

 

“We are hopeful that our businesses will survive. We have over the years learned how to be resilient because what we normally teach them is that whatever it will cost to run your business, you build it into the final cost.’’

 

 

The President of the Manufacturers Association of Nigeria, Francis Meshioye, described the development as “unpleasant”, but said the body would issue a statement on it.

 

 

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Dele Kelvin Oye, warned that the new electricity tariff hike would lead to higher costs of doing business.

 

 

In a statement, he said, “While the commission’s efforts to enhance metering and protect consumers from over-billing are commendable, the tariff hike, influenced by the rise in natural gas base prices, has implications for the cost of operations across businesses that already face a fragile economic recovery.

 

“We understand the necessity of aligning energy costs with market realities to foster sector investment and sustainability. Nevertheless, we stress the importance of considering the broader economic impact on industries and the timing of such adjustments.

 

 

“NACCIMA continues to advocate for a transparent and gradual approach in policy implementation, emphasizing the need for broad stakeholder engagement to mitigate adverse effects on business competitiveness and consumer prices.’’

 

 

On its part, the Centre for the Promotion of Private Enterprise, in a statement signed by its Chief Executive Officer, Muda Yusuf, said that the power sector issue had become a major conundrum in the economy.

 

 

It added that while tariff review was an inevitability, a 300 per cent increase in one fell swoop is difficult to justify.

 

 

The organisation said, “There is a major funding and liquidity crisis which is posing a significant risk to investments in the electricity value chain.

 

 

“Costs across the chain have been rising as a result of the multiple macroeconomic headwinds. Meanwhile, the system is not generating the desired liquidity to match the escalating costs.”

 

 

The centre also argued that beyond tariff hikes, some fundamental issues need to be addressed in the electricity value chain.

These issues, it said, are issues of technical and commercial losses which are yet to be addressed.

 

 

“These are inefficiencies costs that consumers are compelled or expected to pay for as part of the cost recovery argument. And these costs are in billions of naira.

 

 

“There is also the exploitative practice of estimated billing. Millions of electricity consumers are yet to be metered,” it added.

 

 

 

 

 

 

 

 

International News

Israel Says It had Struck Two Naval Missile Production Sites In Tehran

Published

on

Spread the love

The Israeli military announced on Wednesday it had struck two naval cruise missile production facilities operating under Iran’s ministry of defence in Tehran.

 

“In recent days, the Israeli air force acting on IDF intelligence struck two key naval cruise missile production sites in Tehran,” the military said.

It said the facilities were used to “develop and manufacture long-range naval cruise missiles, which are capable of rapidly destroying targets at sea and on land”.

The strikes “represent another step in deepening the damage done to the regime’s military production infrastructure”, the military added.

Last week, the military announced its fighter jets had struck several Iranian naval ships in the Caspian Sea, including vessels equipped with anti-submarine missiles.

 

 

 

 

AFP

Continue Reading

International News

2025 ‘Deadliest Year’ Yet For Red Sea Migrants, UN Reports 922 Deaths

Published

on

Spread the love

The number of migrants who died on the “Eastern Route” from the Horn of Africa to the Arabian Peninsula doubled to a record high of 922 last year, the UN migration agency said Wednesday.

Tens of thousands of migrants from Ethiopia, Somalia and neighbouring countries take the route across the Red Sea each year, mostly from Djibouti to Yemen, in search of work as labourers or domestic workers in wealthy Gulf countries.

“2025 was the deadliest year ever recorded on the Eastern migration route… with 922 people dead or missing — double the number from the previous year,” Tanja Pacifico, head of mission for the International Organisation for Migration (IOM) in Djibouti, told AFP.

The majority of victims were from Ethiopia, the second most-populous country in Africa with more than 130 million people. It is plagued by multiple internal conflicts and deep poverty.

“IOM remains fully committed to working alongside the government of Djibouti to promote safe and dignified migration pathways, in order to prevent further tragedies,” said Pacifico.

Many migrants who cross the Red Sea find themselves stuck in Yemen, the poorest country on the Arabian Peninsula, which has been embroiled in a civil war for nearly a decade, and some even choose to return.

Rapid economic growth in Ethiopia — estimated to reach around 10 percent in 2026 — could encourage less migration, IOM says, but that is mitigated by high inflation, also around 10 percent in February.

 

AFP

Continue Reading

International News

Denmark Faces Lengthy Negotiations To Form A Government

Published

on

Spread the love
Election workers recount ballots in the Marselisborg Hallen in Aarhus, Denmark on March 25, 2026. (Photo by Mikkel Berg Pedersen / Ritzau Scanpix / AFP) /
Election workers recount ballots in the Marselisborg Hallen in Aarhus, Denmark on March 25, 2026. (Photo by Mikkel Berg Pedersen / Ritzau Scanpix / AFP) /

Denmark’s political parties began the thorny process of forming a government Wednesday, with the centrist Moderates as kingmaker after the prime minister’s Social Democrats scraped through a general election without a majority.

Greenland’s Inuit Ataqatigiit party member Naaja Nathanielsen (C) looks on in a polling station in Nuuk, on March 24, 2026, during the parliamentary election in Denmark (Photo by Oscar Scott Carl / Ritzau Scanpix / AFP) / Denmark OUT

Danes were braced for a weeks-long process as Prime Minister Mette Frederiksen seeks to consolidate power in the deeply splintered parliament after Tuesday’s snap vote.

Denmark’s Prime Minister Mette Frederiksen arrives at Amalienborg Palace in Copenhagen to inform the king about the election result one day after the parliamentary election on March 25, 2026. (Photo by Martin Sylvest / Ritzau Scanpix / AFP) 

A left-wing bloc made up of five parties, including Frederiksen’s Social Democrats, won 84 seats; the right-wing and far-right claimed 77; and the Moderates won 14 in the election.

The Social Democrats posted their worst election score since 1903—though they remained Denmark’s largest single party, with 38 seats in the 179-seat parliament.

Chairwoman of the Social Democrats Mette Frederiksen attends a party leader debate hosted by Publicists’ Club one the day after the parliamentary election at the Confederation of Danish Industry’s building in Copenhagen on March 25, 2026. (Photo by Liselotte Sabroe / Ritzau Scanpix / AFP)

 

 

Frederiksen formally tendered her coalition government’s resignation to King Frederik on Wednesday, telling a televised party leader debate she wanted to try to form a centre-left government.

“The most realistic scenario” would be a coalition with the five parties on the left and the centre-right Moderates, she said.

But it is not certain the Moderates, led by Foreign Minister Lars Lokke Rasmussen, would agree to that.

“I don’t believe that Denmark needs policies aligned with” the leftist Red-Green Alliance, Lokke said.

Chairman of the Moderates Lars Loekke Rasmussen attends a party leader debate at the Confederation of Danish Industry’s building in Copenhagen on March 25, 2026, the day after the parliamentary election. (Photo by Liselotte Sabroe / Ritzau Scanpix / AFP) / Denmark OUT

King Frederik was to meet party leaders individually later Wednesday to determine who should be asked to try to form the next government.

“My expectation is that Mette Frederiksen will become prime minister,” University of Copenhagen political science professor Rune Stubager told reporters.

“But I don’t know with the backing of which parties, like the left wing or the right wing,” he said.

He noted that Lokke, a two-time former prime minister, would likely vie for the position of prime minister, even though he has adamantly denied any interest in the job.

“Danes want me and not another prime minister. I still have the backing to be able to continue on behalf of the Danish people,” Frederiksen insisted during the debate.

Frederiksen has for the past four years headed an unprecedented left-right coalition made up of her Social Democrats, the Moderates and the Liberals.

The Liberals have refused to continue in a Social Democrat-led government.

‘Too Hard To Say’

Danes are now prepared for long negotiations. After the 2022 election, the talks lasted six weeks.

“It’s a long process, which means the government won’t be formed and it will be quite difficult to pass laws during this period,” lamented Jesper Dyrfjeld Christensen, a 54-year-old engineer.

“It’s really too hard to say who will be part of the coalition,” admitted Stubager.

With 12 parties in parliament, the political landscape is jagged — though Denmark is accustomed to minority governments.

“To some extent, this is the way Danish politics works. You have a minority government in the centre which forms a majority with the left on some issues and with the right on others,” he explained.

The negotiations are expected to focus on economic and pension issues, pollution and immigration, he said.

The traditional far-right party, the Danish People’s Party, which has heavily influenced policy since the late 1990s but slumped in the 2022 election, more than tripled its result to 9.1 per cent of votes.

The three anti-immigration groups together garnered 17 per cent, a stable figure for Denmark’s populist right over the past two decades.

“If negotiations take place in the left-wing bloc with the moderates, then there will be more focus on green issues than on immigration,” Stubager said.

“But if, instead, the Moderates negotiate with the parties on the right, then the central issue will be immigration.”

Four seats in Denmark’s parliament are held by its two autonomous territories — two for Greenland and two for the Faroe Islands.

While the Faroese renewed the mandates of the two outgoing lawmakers, with one for each bloc, Greenland overwhelmingly backed the left-wing party and Naleraq, which advocates rapid independence from Denmark.

 

 

 

 

 

AFP

Continue Reading

Trending

Copyright © 2026 TheColumn NG