NLC, Govt Agree On Three Months Subsidy On Electricity Tariff for Consumers

Last month, the NLC and the TUC vowed to go on strike if the government did not reverse the raise in energy rates and the spike in the price of petrol.
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Nigerian Labour Congress (NLC)

The federal government and the Nigerian Labour Congress (NLC) have agreed to use the Value Added Tax (VAT) proceeds in order to temporarily subsidize consumer electricity tariffs for the next three months.

The resolution came at the end of a meeting of the ad hoc technical committee on electricity tariffs with the federal government and representatives of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) on Monday in Abuja.

The conference, which started on Sunday, was chaired by Festus Keyamo, the Minister of State for Labour and Work.

Main decisions at the meeting include the provision of a tariff relief package of about N10.20 per kilowatt-hour for some groups of energy users for the next three months and free delivery of about six million prepaid metres to users at the completion of the two weeks grace period for the suspension of the new tariffs approved last September.

Other highlights of the resolutions include the use of VAT proceeds to temporarily subsidize electricity rates awaiting the conclusion of the government committee's work on tariff bargaining and other issues capable of having a major effect on the country's tariff changes.

The meeting also decided to provide electricity employees with wage protection, compulsory compensation by DisCos for any over-billing during the system implementation phase, and monthly notification by the Nigerian Electricity Regulatory Commission (NERC) of the approved billing of unmetered customers in the region.

The resolutions are found in a statement released via his authenticated Twitter account, @fkeyamo, by Mr Keyamo on Monday.

Last month, the NLC and the TUC vowed to go on strike if the government did not reverse the rise in energy rates and the spike in the price of petrol.

After the government removed subsidies on the two items, the prices were raised.

After meetings between all parties, in order to allow negotiations, the government asked DisCos to reverse the electricity tariff increase by two weeks. An extra week was also added to the two weeks before Monday's resolution.

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