Economy

Inconsistent Electricity Reforms Eroding Nigerians’ Trust In Govt, Says NLC

Published

3 years ago

January 8, 2021

The President of NLC, Ayuba Wabba, said the practice of introducing power reforms had never been in the interest of consumers but that of the DISCOS and GENCOS.

Wabba in a statement on Friday entitled ‘Reversing the recent increases in Nigeria’s electricity tariff structure is not enough’ said the reforms were causing hardship to ordinary Nigerians and the manufacturing sector.

He said the government reneged on the agreement reached with the labour union to suspend further increases in electricity tariff until the committee was able to settle the inconsistencies in Nigeria’s electricity sector.

“Contrary to what the Honourable Minister projects to the public, the truth is that while the committee was yet to conclude its assignment, the government unilaterally hiked electricity tariff. This is most unfortunate and totally unacceptable,” he said.

He said even though the Minister of Power, Saleh Mamman, argued that there had been no increment, the new tariff structure advertised by many of the DISCOs showed the price adjustment was not minor as some of the increases were up to 60 per cent to 100 per cent across all the bands.

Wabba said, “In one breath, the Honourable Minister debunked any increase in electricity tariff, especially for Nigerians who are grouped under Band D and E tariff structure. In the same statement, the Honourable Minister admitted that there have been adjustments in what customers across the five bands pay.

“The import of statements like this is that they do not only confuse citizens but also confound them on the genuineness of government intentions and actions. The chief casualties in situations like this is public trust and confidence in government.”

Wabba said the practice of transferring the volatilities in foreign exchange and loading the current rate of inflation on workers and other consumers already badly buffeted by the downturn in the economy signaled an attitude of insensitivity by government.

“The feelers from many stakeholders in the electricity supply chain suggest that the regulator in the sector pulls more on the side of the DISCOs and GENCOs rather than on the side of consumers of electricity both industrial and private users.”

He reiterated that there should be a holistic review of the entire power sector privatisation programme because it had failed to achieve the economic goals contained in Nigeria’s Constitution.

According to him, the privatisation has failed to protect the economic welfare of citizens and violated the constitutional expectations that the commanding heights of the Nigerian economy should be managed by the state.