Northern Nigerian Breaking News

NLC demands implementation of electricity tariff reduction agreement


The Nigeria Labour Congress (NLC)  has said the Federal Government must implement by December the agreement to reduce electricity tariffs by N15 per kilowatt-hour.

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The NLC President, Ayuba Wabba, announced this in a statement on Thursday titled ‘Gas sale to Gencos should be below $1.50/scf’.

The statement cautioned that it would not accept the serial violations of agreements, noting that it was serving the government a notice.

According to the statement , “It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government of Nigeria and organised labour, hereinafter referred to as the principals, on 28th September 2020.

Read Also:JUST IN: Labour calls off strike as FG suspends electricity tariff

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“Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff.

“The technical committee thus set up on 28th September 2020 had a clear mandate to review several critical issues in the power sector and to suggest reforms that will provide succour to Nigerians over the short and long term.”

It explained that the technical committee submitted its final report in January, noting that the Federal Government and labour met on February 22 and discussed the report.

It added that, “The principals accepted, among other recommendations, that necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu.

“Whereas, the Gencos are required to pay as much as $2.50 per standard cubic feet, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per scf.”

The statement said the principals resolved that gas companies should be integrated into the Central Bank of Nigeria payment wallet of the Nigerian Electricity Sector Industry to guarantee payments for gas and contract sanctity of Gencos.

Read Also:FG extends suspension of new electricity tariff

It added that, “Consequently, congress demands of the Federal Government to reduce the pricing of domestic gas supply to Gencos to less than $1.50 per scf.

“Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement.”

‘’The congress had thus served notice that the posture of the Federal Government to flout agreements was completely unacceptable and would be resisted.’’

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