TINUBU’S TARRIF HIKE PHENOMENON: NLC, FG set for Showdown

Tinubu Tarrif Hikes and Burden Phenomenon:- Nigeria has witnessed a surge in tariff hikes across various sectors under President Bola Tinubu's administration.

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The Nigerian Labour Congress (NLC) has issued a strong warning to the Federal Government, vowing to mobilize workers and citizens for a nationwide protest if the proposed electricity tariff hike is implemented.

The NLC has described this action as “economic violence” against the working class and broader Nigerian populace, emphasizing that it’s unacceptable to burden citizens with increased tariffs amidst the existing economic hardship

The National Union of Electricity Employees (NUEE) has also joined the chorus, warning the Federal Government against the planned tariff hike. The union argued that Nigerians should not be paying for darkness, highlighting the inconsistency between the proposed hike and the current level of service delivery

At its National Executive Council meeting in Yola, Adamawa State recently, the NLC rejected the reclassification of electricity consumers by the Nigerian Electricity Regulatory Commission (NERC).

The union accused the Ministry of Power and NERC of attempting to force consumers into higher tariff bands under the guise of service improvement, while actually deepening economic hardship.

The NLC emphasized that any attempt to increase electricity tariffs would be met with “mass resistance” and that the union is prepared to mobilize for nationwide protests if the Ministry of Power and NERC proceed with this “exploitative plan”

Furthermore, the NLC expressed concerns over the recent 35% increase in telecommunications tariffs, cautioning that the implementation of this hike, set to take effect on March 1, 2025, would be closely monitored. If the agreement reached between the NLC and the Federal Government is not upheld, the union warned that it would take immediate action to enforce compliance.

The NLC has been criticised in recent times for not doing enough towards improved welfare and emancipation of the Nigerian populace.

The NLC’s stance on these issues reflects its commitment to protecting the interests of Nigerian workers and citizens, and its determination to resist policies that exacerbate economic hardship.

Tinubu Tarrif Hikes and Burden Phenomenon:- Nigeria has witnessed a surge in tariff hikes across various sectors under President Bola Tinubu’s administration.

In almost two years, four different tariffs have been reviewed upwards, and one introduced, exacerbating the financial burden on Nigerians as the cost of living rises and purchasing power drops.

Electricity Tariff Adjustment: The Nigerian Electricity Regulatory Commission (NERC) approved a significant increase in electricity tariff for customers under the Band A classification. Musliu Oseni, NERC vice-chairman, stated that customers receiving 20 hours of electricity supply daily would pay N225 per kilowatt (kW), up from N66. This adjustment aims to reduce the federal government’s expenditure on electricity subsidies by about N1.14 trillion.

50% Increase in Call and Data Costs:- The Nigerian Communications Commission (NCC) approved a 50% tariff hike for telecommunications companies, the first increase since 2013.

Wale Edun, the minister of finance and coordinating minister of the economy, justified the hike as essential for sustaining the sector amid rising operational costs and inflation. However, the Nigeria Labour Congress (NLC) criticized the decision, describing it as a “clear assault” on Nigerian workers’ welfare.

ATM Transaction Fee Hike: The Central Bank of Nigeria (CBN) reviewed transaction fees for automated teller machines (ATMs), effective March 1. Customers withdrawing from non-customers’ ATMs will be charged N100 per N20,000 withdrawal, plus a surcharge of up to N500

15% Ports Charges:- The Nigerian Ports Authority (NPA) implemented an upward review of port tariffs, citing inflation. Abubakar Dantsoho, NPA managing director, stated that the tariff review would fund ICT infrastructure deployment. However, the Manufacturers Association of Nigeria (MAN) criticized the review, citing businesses’ struggles with rising operational costs and economic uncertainties.

Customs 4% FOB Charges:- The Nigeria Customs Service (NCS) announced plans to implement a 4% charge on the free-on-board (FOB) value of imports. However, following outcry from businesses and consumers, customs suspended the implementation on February 11.

it is uncertain if another round of Tarrif increase that could further excruciate the plights and survival of Nigerian people would not be imposed or introduced.

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