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FG’s plan to increase electricity tariff callous, says Labour

By Cross Udo, Abuja

The Nigeria Labour Congress (NLC) yesterday described as insensitive and callous the Federal Government’s 40 percent proposed hike in electricity tariff from July 1.

The NLC said with the contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones, in addition to other costs/tariffs on the way, life in Nigeria could truly be described as Hobbesian.

Labour, in a statement issued by its President, Joe Ajaero, advised the government to shelve the proposed tariff hike for the collective safety of the masses.

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The statement read: “The plan to increase electricity tariff by 40 percent by July 1st is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones.

“The massive increase is explained away as a response to the over 100 percent increase in the pump price of Premium Motor Spirit (PMS), otherwise known as petrol.

“Details reveal a movement in inflation from 16.9 percent to 22.41 and a shift in the exchange rate from  N441 to N750.”

The Labour centre added, “We believe not even these figures are a justification for this reckless proposed tariff increase.

“The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalization by market logic.”
The NLC contended that there have been increases without notice in the violation of statutes.”

Ajaero also stated, “The service providers, in spite of sundry support, have not been able to meet the threshold of 5,000 megawatts.
“Coupled with this, there have been surreptitious increases without notice in violation of statutes.

“The inherent risk in the new regime of tariff is that there is no control, implying that by August, consumers will pay new rates.

“The other risk is that by the time other products or service-rendering entities come up with their new prices or rates, the ordinary person would have been compacted into dust.”

He, therefore, submitted, “We would want to advise apostles of the market who have called the NLC all sorts of names to check their conscience.
“The rate at which they are going is highly combative and combustible. With the contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones, in addition to other costs/tariffs on the way, life in Nigeria could truly be Hobbesian.

“The market economies which the market fundamentalists seek to emulate, have in place socio-economic safeguards which we do not have.
“In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety.”

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