May 27, 2010

Press Statement

ELECTRICITY TARIFFS INSENSITIVE AND UNACCEPTABLE

The leadership of the Nigeria Labour Congress has noted with dismay recent pronouncements by the Federal Government on some very sensitive issues without due regard to the pathetic situation of Nigerians particularly that of workers, pensioners and the unemployed who constitute majority of our population.

While we have up to now restrained ourselves from responding to plans and insinuations by government to, through the National Electricity Regulatory Commission (NERC), increase electricity tariffs in the country, the revelation on Tuesday, May 25, 2010 by the Minister of State for Power, Mr Nuhu Wya, of the Presidential directive to raise electricity tariffs in order to make the sector more competitive and attractive to both local and foreign investors is not only insensitive but absolutely unacceptable.

We are convinced that the correct and logical step in the sector is to first of all improve on our power generation and distribution capacity before considering the question of increase in tariffs. It would be the height of irresponsibility and total lack of wisdom on the part of government to add further burden on Nigerians under the prevailing scenario where many business concerns depend on generating their power needs or closing down their operations or relocate out of the country. The increment, if allowed to be implemented, is certainly a death sentence to the very few industries still operating in the country, most fundamentally, our fragile but active small and medium business enterprises which today form the backbone of our economy.

The NLC is opposed to increase in electricity tariffs and we call on all well-meaning Nigerians to oppose and protest any move to implement the policy in its entirety because it will worsen the situation of the country’s manufacturing sector as well as further impoverish Nigerians and increase the country’s labour and employment crisis.

We call on President Goodluck Jonathan to immediately reverse this ill-advised policy. Rather, he should, as the man directly in charge of the Power Sector, focus his attention on how to deliver on the promises of improving power generation and supply.

Mr President should know that the problem in the power sector is not that of low or poor tariffs but most visibly that of corruption and the overwhelming influence of a cabal of generator importers who are determined to frustrate any genuine attempt to correct the situation. We urge Mr President to therefore restrain himself from embarking on any policy that will derail him from achieving his plans for the sector. The quickest way to distraction is this policy of increase in electricity tariffs.

John Odah

General Secretary