NLC Gives Ultimatum For FG To Implement Electricity Tariff Reduction Agreement

The NLC President, Ayuba Wabba, in a statement on Thursday, August 5, titled 'Gas sale to Gencos should be below $1.50/scf', stated that the Congress would not accept the serial violations of agreements.

"It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government of Nigeria and organised Labour, hereinafter referred to as the principals, on 28th September 2020.

"Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff.

"The technical committee thus set up on 28th September 2020 had a clear mandate to review several critical issues in the power sector and to suggest reforms that will provide succor to Nigerians over the short and long termÔÇØ the statement read.

According to Wabba, the technical committee of the Congress, submitted its final report in January, and discussed the report with the Federal Government on February 22.

"The principals accepted, among other recommendations, that necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu.

"Whereas, the Gencos are required to pay as much as $2.50 per standard cubic feet, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per scf.ÔÇØ

Wabba said the principals resolved that gas companies should be integrated into the Central Bank of Nigeria payment wallet of the Nigerian Electricity Sector Industry to guarantee payments for gas and contract sanctity of Gencos.

The NLC said, "Consequently, congress demands of the Federal Government to reduce the pricing of domestic gas supply to Gencos to less than $1.50 per scf.

"Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement.ÔÇØ