Experts, CDWR Criticizes Electricity, Telecom Tariffs Hike

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, had announced plans to increase electricity tariff in the coming months, citing the need for a cost-reflective pricing model to attract private investment into the power sector.

Verheijen stated this at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria presented a $32 billion plan to expand electricity access by 2030.

The presidential aide, however, said the planned increase needed to be balanced by subsidies for less-affluent electricity users.

Reacting, Adenikinju said it is hard to justify an increase at this time.

The former Director, Centre for Petroleum Energy Economics and Law (CPEEL), University of Ibadan, said: “It is hard to justify the increase in electricity tariff at this time. The promise of a stable electricity supply following the last tariff increase has not been fulfilled; electricity supply remains epileptic in most cases.

“Nigerians are also reeling from the high inflationary environment. Higher electricity tariffs would undoubtedly fuel inflation rate in Nigeria.”

Also, Olalere, who is a development economist, said: “It is an aberration to plan tariff increase where there is no power supply. Let the energy be stable, so that people will know what they are paying for. If you are not providing dividends of democracy, you should not be increasing tariffs everywhere. That of telecommunications is still there. It does not make sense to increase tariffs when there is no supply.”

CDWR, in a statement by its National Publicity Secretary, Chinedu Bosah, described the increase as an outrageous move that will further escalate the cost of living and doing business, deepening the economic hardship faced by workers and the masses.

It, consequently, declared its support for the planned nationwide protest by the Nigeria Labour Congress (NLC) tomorrow.

Telecom operators and NCC defended the tariff increase, citing rising operating costs driven by factors such as fuel price hikes, floating of the naira and increased electricity tariffs, but CDWR criticised telecom companies for failing to oppose Federal Government economic policies, which led to the cost increases.

According to the group, instead of reversing the policies responsible for worsening inflation and economic hardship, the government and the corporate elite were transferring the burden to the working class.

CDWR accused the Tinubu-led administration of prioritising the interests of big businesses and international financial institutions like the International Monetary Fund (IMF) and World Bank at the expense of ordinary Nigerians.

Criticizing the NLC and Trade Union Congress (TUC) leadership for failing to sustain resistance against anti-poor policies in the past, the rights group urged the unions to go beyond symbolic rallies and instead organise a sustained mass struggle, including general strikes and mass protests, to challenge all exploitative policies.

The organization also called for the nationalisation of key sectors of the economy, placing them under democratic control and management by workers and community representatives to ensure equitable distribution of national wealth.

According to a letter from the Office of the Secretary to the Government of the Federation (OSGF), with ‘CO.58597/IV/1012’ as the reference number and addressed to the President of Congress, Joe Ajaero, the dialogue will also touch the increment in the budget for the power sector.

Entitled, ‘Invitation to a dialogue on the recent Federal Government-approved increase in telecommunications tariffs, concerns over the power sector and the impending nationwide mass action called by the Nigeria Labour Congress’, the letter noted that the invitation followed the decision of NLRC to conduct nationwide protests tomorrow.

The letter, which was signed by the Permanent Secretary (General Services Office), Dr Maurice Mbaeri, on behalf of the SGF, George Akume, reads:

“Sequel to the recent call by NLC for a stakeholders’ dialogue on the matters of national interest as it affects the Nigerian workers, I am directed to invite you to an inter-ministerial meeting with the SGF, aimed at resolving all grey areas, particularly related to the NLC’s concerns over the two following issues viz: recently approved upward adjustments to telecommunications tariffs operational in the country and the NLC’s call for nationwide mass action.

“The proposed 2025 FGN budgetary allocation for Electricity Bill Sensitization’ to the Federal Ministry of Power.”

The meeting is slated for 5 p.m. today in the conference room of the SGF’s office.

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, had announced plans to increase electricity tariff in the coming months, citing the need for a cost-reflective pricing model to attract private investment into the power sector.

Verheijen stated this at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, where Nigeria presented a $32 billion plan to expand electricity access by 2030.

The presidential aide, however, said the planned increase needed to be balanced by subsidies for less-affluent electricity users.

Reacting, Adenikinju said it is hard to justify an increase at this time.

The former Director, Centre for Petroleum Energy Economics and Law (CPEEL), University of Ibadan, said: “It is hard to justify the increase in electricity tariff at this time. The promise of a stable electricity supply following the last tariff increase has not been fulfilled; electricity supply remains epileptic in most cases.

“Nigerians are also reeling from the high inflationary environment. Higher electricity tariffs would undoubtedly fuel inflation rate in Nigeria.”

Also, Olalere, who is a development economist, said: “It is an aberration to plan tariff increase where there is no power supply. Let the energy be stable, so that people will know what they are paying for. If you are not providing dividends of democracy, you should not be increasing tariffs everywhere. That of telecommunications is still there. It does not make sense to increase tariffs when there is no supply.”

CDWR, in a statement by its National Publicity Secretary, Chinedu Bosah, described the increase as an outrageous move that will further escalate the cost of living and doing business, deepening the economic hardship faced by workers and the masses.

It, consequently, declared its support for the planned nationwide protest by the Nigeria Labour Congress (NLC) tomorrow.

Telecom operators and NCC defended the tariff increase, citing rising operating costs driven by factors such as fuel price hikes, floating of the naira and increased electricity tariffs, but CDWR criticised telecom companies for failing to oppose Federal Government economic policies, which led to the cost increases.

According to the group, instead of reversing the policies responsible for worsening inflation and economic hardship, the government and the corporate elite were transferring the burden to the working class.

CDWR accused the Tinubu-led administration of prioritising the interests of big businesses and international financial institutions like the International Monetary Fund (IMF) and World Bank at the expense of ordinary Nigerians.

Criticizing the NLC and Trade Union Congress (TUC) leadership for failing to sustain resistance against anti-poor policies in the past, the rights group urged the unions to go beyond symbolic rallies and instead organise a sustained mass struggle, including general strikes and mass protests, to challenge all exploitative policies.

The organization also called for the nationalisation of key sectors of the economy, placing them under democratic control and management by workers and community representatives to ensure equitable distribution of national wealth.

According to a letter from the Office of the Secretary to the Government of the Federation (OSGF), with ‘CO.58597/IV/1012’ as the reference number and addressed to the President of Congress, Joe Ajaero, the dialogue will also touch the increment in the budget for the power sector.

Entitled, ‘Invitation to a dialogue on the recent Federal Government-approved increase in telecommunications tariffs, concerns over the power sector and the impending nationwide mass action called by the Nigeria Labour Congress’, the letter noted that the invitation followed the decision of NLRC to conduct nationwide protests tomorrow.

The letter, which was signed by the Permanent Secretary (General Services Office), Dr Maurice Mbaeri, on behalf of the SGF, George Akume, reads:

“Sequel to the recent call by NLC for a stakeholders’ dialogue on the matters of national interest as it affects the Nigerian workers, I am directed to invite you to an inter-ministerial meeting with the SGF, aimed at resolving all grey areas, particularly related to the NLC’s concerns over the two following issues viz: recently approved upward adjustments to telecommunications tariffs operational in the country and the NLC’s call for nationwide mass action.

“The proposed 2025 FGN budgetary allocation for Electricity Bill Sensitization’ to the Federal Ministry of Power.”

The meeting is slated for 5 p.m. today in the conference room of the SGF’s office.