Government shutting down more companies, businesses, NLC cries out

By Chukwuma Umeorah

The Nigeria Labour Congress (NLC) has accused the government of forcing the shutdown of more companies and businesses due to the recent hike in electricity tariffs by distribution companies (DISCOs) from N206.80 to N209.5/kwh for Band ‘A’ customers, effective July 1, 2024.

NLC president, Joe Ajaero, in a statement, warned that the increase would further strain the economy and worsen the plight of consumers.

“This increment follows unresolved disputes over a prior 250 percent tariff hike, which led to a national paralysis and the closure of 300 businesses as reported by the Manufacturers Association of Nigeria (MAN),” said Ajaero.

He emphasized the widespread public outrage and organized labour protests against the initial increase, which were suspended only after the National Assembly assured that the issue would be addressed.

Ajaero expressed deep disappointment over the latest hike, stating, “We had demanded a reversal, and the only reason that action was paused was a firm assurance from relevant quarters, including the National Assembly, that the matter would be dealt with quietly. Instead of a reversal, we now face another increase, demonstrating the government’s insensitivity and insincerity.”

The NLC president also criticized the justifications provided by DISCOs for the tariff hike namely; exchange rate fluctuations, rising interest rates, and the cost of gas.

He argued that these factors merely treat the symptoms of the energy crisis without addressing the root causes. “Government and entities in the energy sector are not serious about finding an enduring solution to our energy crisis,” he said.

Given the potential economic damage of the latest tariff increase, Ajaero demanded an immediate reversal, deeming the hike “unjustifiable, unreasonable, and malevolent.”

“Government and DISCOs should stop killing the people and the economy,” Ajaero lamented.