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HomeBUSINESSEconomyHike bazaar! Nigerians hit by fresh electricity, telecoms tariffs

Hike bazaar! Nigerians hit by fresh electricity, telecoms tariffs

By Sarah NEGEDU

As the economy continues to bite hard and inflation at over 34 percent, there seems to be no end in sight with tax hikes on services by the federal government.

Organised labour under the aegis of the Nigeria Labour Congress, NLC, has voiced its opposition to the hikes especially the telecoms and has fixed Tuesday, February 4 for a nation-wide rally.

Electricity hikes

To address funding challenges, the federal government in July 2024 through the Nigerian Electricity Regulatory Commission, NERC, announced an increment and category of bands to boost electricity supply.

The hike saw tariff increase from N206.8 per kilowatt-hour to N209.5 per kilowatt-hour.

The imminent hike which has upped further anxieties amongst public electricity users in the country is needed to be balanced by subsidies for less-affluent electricity users, Bloomberg quoted the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen.

Verheijen is said to have given the hint at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria presented a $32 billion plan to expand electricity connections by 2030.

According to the presidential aide, Nigeria is trying to resolve the transition to a cost-efficient but cost-reflective tariff to attract private investors.

She said: “One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff.

“So the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable.”

Last year, the federal government approved a threefold increase in electricity tariff for customers under the Band A classification.

The fresh move to raise tariffs comes amid mounting pressure from Nigeria’s debt-burdened electricity distribution companies for tariffs to be cost-reflective so they can improve their finances.

Telecoms hike

The Nigerian Communications Commission, NCC, had penultimate week indicated that by March 1, 2025, there will be 50 percent hike in telecoms tariff, a move that has been greeted with opposition.

The NLC has mobilized its affiliate unions and state councils to ensure total mobilization of workers and allies ahead of the February 4, nationwide mass protest against the planned tariffs hike.

Also, the Socio-Economic Rights and Accountability Project, SERAP, has notified the Nigeria Communications Commission, NCC, of its pending suit challenging the government’s decision to approve an increase in telecommunications tariff by 50 per cent.

This came as the Lagos Chamber of Commerce and Industry, LCCI, said the hike will place additional burdens on low-income earners, noting, however, that it will offer necessary relief to operators.

The Non-Academic Staff Union of Educational and Related Institutions, NASU, umbrella body for pro-workers civil society organisation, Joint Action Front, JAF, and the Human Rights Writers Association of Nigeria, HURIWA, yesterday, called on Nigerians to join the February 4, planned protest, urging Nigerians to fully participate in any other action aimed at resisting the planned tariff hike.

However, NCC said it will engage NLC, SERAP, National Association of Telecom Subscribers in Nigeria, NATCOMS, and NATCOMS, to explain the reasons for the price adjustment.

The NLC, in separate letters dated January 30, to affiliate unions and state councils, through its General Secretary, Emma Ugboaja, urged them to also mobilise other Nigerians to send a serious message to the government.

The letter reads: “In response to a resolution of the meeting of the National Administrative Council, NAC, to resist the proposed 50 per cent hike in the tariff of telecommunication services and all other forms of policies that afflict Nigerian workers and masses, all state councils of NLC are directed to begin immediate mobilisation of members of their councils in their respective states for a one-day peaceful protest rally.

“The rally shall take place in various state capitals and FCT on February 4, 2025, by 7a.m. You are expected to co-ordinate all affiliates in your states and work with volunteering civil society partners resident in your state for effective rally.

“The rally procession should lead to any NCC office in the state, where not available, to the state House of Assembly where our petition will be presented. Further developments shall be made available.

“At this time of massive hardship, your unwavering support and determination is critical to defending ourselves and nation from policies that emasculate us for the benefit of corporate fat cats.”

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