Adebayo Adelabu, Nigeria’s Minister of Power, warned that reversing the recent electricity tariff hike would impede the ongoing transformation efforts in the energy sector.
Speaking after a two-day Federal Executive Council (FEC) meeting at Aso Villa, Adelabu appealed to labour unions to cooperate with the government, emphasising that reforms are necessary for improving electricity supply across the nation.
On Monday, labour unions organised a one-day protest, picketing the Nigerian Electricity Regulatory Commission (NERC) offices in Abuja and various distribution companies (DisCos) nationwide. The unions demanded a complete reversal of the tariff increase before continuing negotiations.
Adelabu reassured reporters that the government is considering the demands placed before it by labour unions. He reflected on the electricity shortages experienced in February and March, which impacted households, businesses, and institutions. Adelabu highlighted that reforms initiated in April have already improved electricity supply, stressing the importance of continuing these efforts without interruption.
“My appeal is that they should not derail or distract from our transformation plan for the industry,” Adelabu stated. “We have a documented reform roadmap to achieve reliable, functional, cost-effective, and affordable electricity in Nigeria. This process requires time and sacrifice from all parties involved.”
On April 1, NERC approved a new tariff regime for Band A consumers, raising rates from N68 per kilowatt-hour to N225 per kilowatt-hour, later reduced to N206 following a public outcry. Despite this adjustment, labour unions continue to push for a full reversal.
Adelabu acknowledged the rights of workers to protest and assured that the government is open to further engagement to reach a peaceful resolution. He noted that over 95% of the protesters are not directly affected by the tariff increase, as they still benefit from substantial government subsidies.
“The average cost of generating, transmitting, and distributing electricity is not less than N180 today, yet many are paying below N60,” Adelabu explained. He urged patience from the public as the government implements its power sector plans.
The FEC has approved several projects to enhance the electricity sector. These include the procurement of 10 transformers and 10 reactors for the Transmission Company of Nigeria (TCN) at $4.8 million and N102 million. This equipment aims to improve the national grid’s performance, reduce electrical shock risks, and protect infrastructure.
Additionally, the council approved the construction of a 93-kilometer transmission line from Oji River to 9th Mile in Enugu State, costing $33.9 million and N10.1 million. This project will stabilise and expand the national grid’s capacity.
Lastly, the FEC sanctioned the supply and installation of 15 emergency restoration systems for 330 KV and 132 KV transmission lines, valued at $14 million, to address vandalism impacts, particularly in the Northeast.
These initiatives underscore the government’s commitment to addressing power sector challenges and ensuring reliable electricity supply, which is crucial for Nigeria’s economic growth and development, Adelabu emphasized.
