NLC demands electricity tariff reduction, kicks against GENCOs paying FG in dollar

The Nigeria Labour Congress has insisted that President Muhammadu Buhari’s regime reduce electricity tariff to N15 per kilowatt-hour by December 2021 as it kicks against the government receiving payments from GENCOs in foreign currency.

”Consequently, congress demands the federal government to reduce the pricing of domestic gas supply to GENCOs to less than $1.50 per SCF. We also demand that payment for gas by GENCOs should be denominated in naira,” it stated.

It also demanded gas companies’ inclusion in the Central Bank of Nigeria and the Nigerian Electricity Service Industry payment “waterfall to guarantee payments for gas and contract sanctity” with GENCOs.

Regarding electricity tariffs, the NLC demanded the government respect the agreement it reached with labour.

“Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021, as contained in the agreement,” it pointed out. ”Congress, hereby, serves notice that the posture of the federal government to flout agreements is completely unacceptable and would be resisted.”

The NLC made the demands in a statement issued on Thursday by its President Ayuba Wabba.

Mr Wabba disclosed that the congress was inundated with numerous inquiries from Nigerians concerning the reported slash of domestic gas prices for electricity generation and its lack of noticeable impact or reduction of electricity tariff.

He also mentioned that the congress had noted the underlying statement of gas price reduction was attributed to the Minister of State for Petroleum Resources, Timipre Sylva.

He explained that the minister at the 2021 Gas Stakeholders Forum in Kano reportedly announced that the federal government had approved reducing domestic gas prices for electricity generation from $2.50 to $2.18 per standard cubic.

”The purpose is to openly ventilate the agreed position between the federal government and organised labour on gas pricing as a critical factor in the computation of electricity tariff,” noted NLC. ”It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the federal government and organised labour, hereinafter referred to as the principals, on September 28.”


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