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Federal government says engagement with labour on electricity tariff hike have been fruitful

President Muhammadu Buhari (left) with the Minister of Labour, Chris Ngige (right) [Premium Times]
President Muhammadu Buhari (left) with the Minister of Labour, Chris Ngige (right) [Premium Times]
Some adjustments have been agreed upon with labour on mechanism for pricing of electricity and petrol.
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The federal government says there's been notable engagements with labour over increment in fuel prices and electricity tariff. 

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The Special Adviser to the President on Infrastructure, Ahmad Zakari, disclosed this during a government-backed enlightenment and feedback programme tagged: 'Have your Say.'

Zakari said the meetings with labour have proven fruitful as significant progress has been made and a mandate of two weeks given.

"There were further changes made in January but, it has been suspended because we concluded that we will not implement laws that are not fully understood by Nigerians. Nigerians need to understand that this Service based Tariff is here to stay,” said Zakari.

He further enumerated the various consumer bands for electricity by saying that band A is the highest for electricity consumers who enjoy between 20-24 hours of electricity daily, while band B consumers will pay less since they get lesser hours of power supply.

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Nigeria Labour Congress and Trade Union Congress members on a road march (Punch)

Band C consumers will pay low amounts depending on their consumption rates.

Bands D and E will have their electricity consumption subsidized since they consume the least amount of power daily.

A contentious issue

Increase in electricity tariff was a contentious issue in 2020.

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The national assembly had asked NERC to suspend the increase at the time due to the economic impact of the COVID-19 pandemic on the populace.

However, there was an increase in tariff afterwards and a statement from the president announcing the end of estimated billing of electricity.

Electricity companies maintain that only a cost reflective tariff in the sector would guarantee regular power supply to homes and businesses.

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