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Nairametrics
Home Sectors Energy

Labour insists: Reverse power sector privatisation for equitable electricity

Deborah Dan-Awoh by Deborah Dan-Awoh
May 13, 2024
in Energy, Sectors
NLC, Minimum wage
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The Organised Labour in Nigeria has taken a firm stance, demanding the complete reversal of the power sector privatisation and the recovery of all public electricity assets sold, amidst protests against the recent hike in electricity tariffs.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) voiced their grievances while picketing the headquarters of the Nigerian Electricity Regulatory Commission (NERC) in Abuja, displaying placards with poignant messages condemning the perceived failures of the privatisation process and the adverse impact of tariff hikes on the populace.

NLC President, Mr Joe Ajaero, described the power sector privatisation as a “colossal failure,” emphasizing the detrimental effects it has had on both workers and businesses across the country.

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He highlighted the disproportionate burden placed on wage-earning workers who lack the flexibility to adjust their incomes in response to rising utility costs. Ajaero underscored the cascading effect of increased energy costs on small and medium-scale enterprises, leading to shutdowns and exacerbating Nigeria’s unemployment crisis.

What he said

That is which are sold cheap to largely inexperienced, technically deficient and financially challenged private investors.

“As workers are hit hardest by the increase in electricity tariff. Unlike business people, wage earning workers cannot adjust their income when the cost of utilities are increased.

“The stagnancy in wage amidst increases in electricity and refined petroleum products push workers over and beyond the limits of sanity and survival.

“Small and medium scale businesses which accommodates millions of workers in the informal economy is severally affected by the increases in energy cost.

“This have led to shutdown of business thus blooming Nigeria unemployment market,” he said.

What to know

Ajaero further articulated the demands of Organised Labour, calling for the reversal of recent tariff hikes and urging the government to uphold agreements made with Labour regarding the halting of further tariff increases until certain conditions are met.

These conditions include a comprehensive review of the privatisation process, the de-dollarization of gas supply to electricity generation, and the distribution of prepaid meters to all electricity consumers.

Highlighting the need for meaningful stakeholder engagement, Ajaero criticized NERC for its failure to convene consultations before implementing the tariff hikes. He stressed the importance of dialogue and collaboration in addressing issues affecting the power sector, calling for greater transparency and accountability from regulatory bodies.

In response to the protests, Sanusi Garba, Chairman of NERC, acknowledged Labour’s concerns and assured them of the Commission’s commitment to addressing issues related to tariff affordability.

He pledged to represent Labour’s interests in policy discussions and highlighted ongoing efforts to diversify energy sources, citing the development of the Zukeru 700-megawatt power plant as a significant step forward.

The organised labour’s demonstrations extended beyond NERC’s headquarters, with visits to the Ministry of Power and Transmission Company of Nigeria, underscoring the collective determination to hold government agencies accountable for addressing the challenges facing the power sector.

Recommended reading: Tony Elumelu calls for privatization of electricity transmission lines to boost economic growth

Backstory

Earlier on Friday, Nairametrics reported that the National Labour Congress (NLC) ordered its members across the country to picket the offices of the Nigerian Electricity Regulatory Commission (NERC) and the power distribution companies (DisCos) on Monday (today) due to the recent hike in electricity tariffs for Band A customers.

In a letter dated May 7 and signed by the general secretary of the union, Chris Uyot, NLC directed all its state councils in the country to stage protests in the following offices.


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Tags: Joe AjaeroNERCNLCpower sector privatisationTUC
Deborah Dan-Awoh

Deborah Dan-Awoh

Deborah Dan-Awoh is a seasoned lifestyle analyst with a knack for storytelling. The focus of her work covers people, money and culture as it relates with business and economy. When she's not keeping tabs on the latest trends in lifestyle and finance- Deborah enjoys networking with industry experts to gain insight into major markets as it affects the populace

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