NLC rejects NERC’s Band A migration plan, threatens nationwide protest

The Nigerian Labour Congress (NLC) has rejected plans by the Nigerian Electricity Regulatory Commission to migrate consumers from lower bands, B, C and D, to Band A, the highest electricity band. 

This rejection was made via a press release provided at the end of the NLC National Executive Council (NEC) meeting, which was held in Yola, Adamawa state.

Signed by both the President of the NLC, Joe Ajaero, and the General Secretary, Emmanuel Ugboaja, the press release explained that the NEC “unequivocally” rejected the reclassification plans of the electricity regulatory body. 

According to the Labour Congress, the migration intended by the NERC will eventually become a means to extort the masses who currently experience economic hardship.

“Whereas inflation has soared, wages remain stagnant, and the cost of living has become unbearable,” the release reads. 

The NLC also warned that any attempt to announce further electricity tariff increases would be met with mass resistance.

“The congress resolved to immediately mobilise for a nationwide protest should the Ministry of Power and NERC proceed with their exploitative plan to further hike electricity tariffs under any guise,” the statement reads.

The Service-Based Tariff scheme

In October 2023, NERC began the implementation of the Service-Based Tariff scheme (SBT), which it claimed was introduced in November 2020. According to the commission, this scheme is meant to provide quality service to users depending on the bands they are placed in.

“To improve service delivery to end-user Customers and ensure that electricity tariffs paid by end-user Customers are a reflection of the services delivered by the Distribution Companies based on the number of hours of electricity supply per day. The regulatory scheme is also designed to support investments towards the improvement of power infrastructure and consequently improvement in quality of supply,” the NLC stated 

With the implementation of this scheme, users were guaranteed a certain duration of time during the day during which they would be able to access electricity. The higher the duration, the more consumers would have to pay.

Under the SBT, consumers are classified in Bands A to E as follows:

Band A: Minimum of 20 Hours. Band B: Minimum of 16 Hours. Band C: Minimum of 12 Hours. Band D: Minimum of 8 Hours. Band E: Minimum of 4 Hours.

However, NLC points out that promised improvements have not materialized, as many consumers in higher bands still face inconsistent power supply despite paying more.

The NLC has vowed to take action if NERC proceeds with its migration of plans. With threats of nationwide protests, the coming weeks could see heightened tensions between the government and organized labour, raising questions about the sustainability of Nigeria’s electricity tariff framework.

NERC’s proposal to migrate consumers comes at a time when Nigerians are still adjusting to the recent hike in telecom tariffs. The initial proposal for a 200 per cent increase in telecom charges sparked widespread backlash, leading to negotiations that eventually settled on a 35 per cent hike.

Similarly, concerns are growing that a reclassification of electricity consumers could lead to another round of financial strain, further exacerbating the economic hardship already faced by millions.  

With inflation on the rise, stagnant wages, and an overall increase in the cost of living, many Nigerians fear that another tariff adjustment will push essential services further out of reach.