Organized labor in Nigeria, including the Nigerian Labour Congress (NLC) and the National Union of Electricity Employees (NUEE), has expressed strong opposition to the federal government’s plan to eliminate electricity subsidies. This decision, announced by Finance Minister Wale Edun, aims to address an outstanding N4 trillion electricity debt and is seen as a response to ongoing fiscal challenges. The minister emphasized the need for fiscal discipline and a shift towards a pay-as-you-go model for electricity supply.
The proposed removal of the subsidy is expected to raise average electricity tariffs significantly, from N66 to N209 per kilowatt-hour (kWh), which critics argue will disproportionately impact low-income consumers already grappling with economic hardships. NLC Deputy General Secretary Chris Onyeka condemned the plan as deceptive, asserting that it would further impoverish the poor while benefiting the wealthy. He criticized the government’s failure to provide reliable electricity despite significant investments.
Similarly, NUEE Acting General Secretary Dominic Igwebike voiced concern about the burden this policy would place on citizens, questioning what the government plans to do with the funds saved from subsidy removal. Both leaders highlighted the need for accountability and better governance, asserting that the government’s approach contradicts its responsibility to provide basic needs for the populace. The push to remove subsidies has intensified fears of rising electricity costs amid Nigeria’s ongoing economic struggles, exacerbating the challenges facing households and businesses.