The Nigeria Labour Congress (NLC) says the Federal Government must implement by December the agreement to reduce electricity tariffs by N15 per kilowatt-hour, or risk industrial action.
In a statement by the NLC President, Ayuba Wabba, on Thursday the union said it will no longer accept serial violations of agreements by the Federal Government on workers’ welfare.
“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,’ the statement said.
“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 said 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.
“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,’ the statement added.
“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.
I“ Consequently, congress demands of the Federal Government to reduce the pricing of domestic gas supply to Gencos to less than $1.50 per scf,’ the NLC said.
“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.’’
