•Says increase in tariffs dragging masses below poverty line, insists on dialogue

Onyebuchi Ezigbo in Abuja and Nume Ekeghe in Lagos

President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, yesterday, lamented what he described as the poor state of the nation’s power supply.

According to him, the country was nowhere in terms of stability in power generation, transmission and distribution, adding that the federal government’s decision to raise tariffs across various sectors, among other policies, has plunged Nigerians further into poverty.

Espousing the position of the labour movement on the 50 percent hike in telephone services, Ajaero said the only solution was for government to halt the implementation until there was an extensive and exhaustive consultations with relevant stakeholders.

Ajaero, who spoke last night as guest on the Channels Television programme, Politics Today, faulted the implementation of privatisation policy, saying then administration went into it without proper consultations and a clear understanding of the limitations.

The NLC president said whereas the private investors were expected to execute the venture through foreign direct investment, most of them relied on loans from local banks.

He said the action of the private sector power firms resulted in liquidity crisis in the banks and led to  subsequent take over of the power distribution companies by the lending banks.

Speaking on the challenges of procurement of electricity distribution accessories, Ajaero said there was need to grow the  local content to ensure availability of the materials at affordable rates.

Ajaero wondered why the Ministry of Power was not paying attention to the issues of local content in the materials used in the nation’s power sector.

He said there used to be meter test in Kafuna, Port Harcourt, and in Oshodi, Lagos, where mechanical meters were produced.

“Today, the power sector has metamorphosed into various entities and we have NEMSA and other meters that are produced, how many meters are we producing? Must we go outside to import? These are some of the challenges facing the power sector that we need to get right,” he said.

Regarding cases of vandalism of power supply cables and other facilities, Ajaero said there were modern technologies to help to know when electricity lines are tampered with and to be used in policing the facilities.

He described the 5,000 mega watts often referred to as electricity generation by the government as very insignificant compared to the level of power supply needed to support the country’s soaring population of over 200 million.

“Nigeria is still at the bottom of countries suffering from power supply poverty. How can you have more than 200 million people and somebody is telling about 5,000 mega watts of electricity.

“The indices is about a thousand mega watts to one million people and we are here trying to beat our chest that we have done it. I think we should sit down and work, taking a look at the local content and some of the things that we do handle locally.

“If after 12 years of the privatisation of the Power sector entities and none of the private firms have deemed it fit to venture into building more power generation plants, then something is wrong that needs to be to be looked at by government,” he said.

He said Nigeria should be thinking of having a mix of electricity generation sources such as wind energy, solar, gas turbines and hydro dams with a clear roadmap on yearly targets to be met.

Ajaero also dwelled on the devastating impact of tariff hikes on ordinary citizens and called for urgent dialogue between the government and relevant stakeholders to address the economic strain.

“These tariff increases are pushing the masses further below the poverty line. A worker earning N70,000 monthly now has to spend over 10 per cent of their income just on electricity tariffs, not to mention the skyrocketing cost of housing and transportation. How is that person supposed to survive?” he said.

The NLC president accused the government of consistently prioritising corporate profits over the welfare of its citizens.

“The speed at which the government concedes to corporate interests, approving tariff hikes in just one month, is unacceptable. Yet, it takes years for them to implement something as basic as a minimum wage increase. This imbalance is not sustainable,” he stated.

He further criticised the government’s lack of meaningful consultation before imposing the increases, labeling it a “clear assault” on the welfare of Nigerian workers.

“No one is talking with us. They are only talking to us. This kind of unilateral decision-making is dangerous in a democracy. If you’re going to increase tariffs by 50 per cent, then what incentives are being offered to ameliorate the impact?

“In some countries, you get free or reduced-cost services at certain times, but here, there are no such measures. It’s simply take it or leave it. This approach is dragging the masses deeper into poverty,” he argued.

He also criticised service providers for prioritising profit over service quality, asking: “How can they justify charging us more when basic services like network coverage are still abysmal in many areas? If you can’t guarantee consistent service, why should we pay higher tariffs? Again, it’s the masses who suffer.

“We have rejected these increases outright and are consulting with our allies to decide on the next steps. A boycott of services is one option we’re seriously considering,” Ajaero revealed.

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