Manufacturers in Nigeria and the organised labour have frowned against the federal government’s 240 percent hike in the tariff payable by electricity users enjoying a 20-hour power supply, the so-called “Band A” consumers, and are insisting on the return of subsidy, warning that its removal would send them out of business and worsen inflation.
The announcement of subsidy withdrawal was made yesterday, and the backlash has been swift and harsh. Power consumers in the “Band A” category, who constitute about 15 percent of the total number of power users across the country are those affected according to the Nigerian Electricity Regulatory Commission (NERC).
Consumers, however, are arguing that the hike in tariff would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, adding that no place in Nigeria enjoyed up to 20 hours of constant power supply daily.
The government announced the hike in the electricity bill at a press briefing in Abuja on Wednesday, adding that those affected would now pay a tariff of ₦225 per kilowatt-hour, up from the previous rate of ₦68 per kilowatt-hour, representing about 240 percent increase.
