Fuel, Electricity Tariff Hike: How Buhari’s Policies Pauperize Nigerians

… Triggering Insecurity, Poverty
…TUC, NASU react as economy collapses, prices of food skyrocket

BY OBUTE JAMES
The recent increase in fuel and electricity tariffs by President Muhammadu Buhari – led administration has continued to draw anger and controversies across the land.
The Petroleum Products Marketing Company, PPMC, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, last week Wednesday increased the ex-depot price of Premium Motor Spirit, also known as petrol, to N151.56 per litre from N138.62 per litre, forcing the pump price of the fuel to N160 and above.
This was disclosed in an internal memo from Ibadan depot to all stakeholders with reference number PPMC/IB/LS/020 dated September 2, 2020 and signed by D.O Abalaka.
The ex-depot price is the price at which the product is sold to marketers at the depots.
The memo, said, “Please be informed that a new product price adjustment has been effected on our payment platform.
”To this end, the price of Premium Motor Spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre. This is effective from September 2, 2020.”
Similarly, in a surprise move, the Nigerian Electricity Regulatory Commission announced an increase in electricity tariff with effect from September 1, 2020.
This came three months after the tariff hike implementation slated for July 1 was halted by the National Assembly, which prevailed on the distribution companies to shelve the date to the first quarter of 2021 due to the current economic challenges in Nigeria.
But NERC on its document said electricity customers, except those receiving less than 12 hours of supply, would have to pay more for electricity starting from September 1, 2020.
According to the document, the new tariff is based on the hours of electricity supply available to the customers.
Customers are categorised into maximum demand and non-maximum demand customers, as against the previous categories of residential, commercial and industrial customers, with different bands (A to E) depending on the level of supply.
For Ikeja Electric, a residential customer on single-phase receiving a minimum of 12 hours of supply will now pay N42.73 per KWh, up from N21.30 per kWh.
For Eko Electricity Distribution Company, a residential customer on single-phase receiving a minimum of 12 hours of supply will now pay N43.01 per kWh, up from N24 per kWh.
For Abuja Electricity Distribution Company, a residential customer on single-phase receiving between 12 to 16 hours of supply will now be charged N45.69 per KWh, up from N24.30 per kWh.
Kaduna Electric announced on Twitter that non-MD receiving between 12 and 16 hours will be charged N50.10 per KWh, adding that the tariffs for customers receiving less than 12 hours had been temporarily frozen.
“Following consultations and directions on tariff policy, the commission hereby approves a deferment of the applicable tariffs for customers in service bands D and E (that is customers with a service commitment of less than an average of 12 hours supply per day over a period of one month) for the period September 1, 2020 to January 1, 2021,” NERC said.
It said the Discos would only be allowed to charge those customers the new tariffs upon investments that improve the quality of service experience, “thus migrating customers to higher service bands or another order of the commission.”
Many Nigerians have condemned the hike in both fuel and electricity and demanded for the immediate halt to their implementation.
Former Vice President Atiku Abubakar faulted the increase in electricity tariff, saying that Nigerians deserve a stimulus after the lockdown over coronavirus pandemic.
Atiku made his view on the electricity tariff increase known in a tweet on last Thursday.
He said the increment was a disregard for the challenges faced by Nigerians.
Atiku said, “I reject the increased electricity tariffs. Coming out of the lockdown, Nigerians need a stimulus, not an impetuous disregard for the challenges they face.
“Many Nigerians have not earned an income for months, due to no fault of theirs. This increase is ill-timed and ill-advised.”
The Trade Union Congress of Nigeria has also condemned the increase in petrol price and electricity tariff in the country.
The TUC expressed its disappointment on Thursday 3rd September, 2020 in a statement titled, ‘Killing the dead,’ and signed by its president, Quadri Olaleye, and Secretary-General, Musa-Lawal Ozigi.
It said, “For the umpteenth time, we have complained about the gradual and steady annihilation of Nigeria in the light of government action.
“Like the book by George Orwell, titled ‘1884’, the government and its agencies have resorted to doing the opposite of what they were set up to do. Government, instead of providing welfare, is killing the people systematically.”
The TUC said increasing petrol prices and electricity tariffs, among others, “at a time people are losing jobs, businesses are not moving in the light of COVID-19, is, to say the least, wicked.”
It said from all indications, it appeared the government had lost touch with Nigerians, adding the government of the day has implemented all the policies Nigerians have kicked against in the past.

The union added, “They have developed a thick skin that our pleas and cries no longer mean anything to them. No government has raped this country like the present one; ironically it has enjoyed our understanding the most.
“They beat us and when we cry, they send security operatives after us or force us to pay a fine of N5m for ‘’hate speech’’. Our patience has run out.
“In droves, Nigerians flee the shores of this country. Just two days ago, we protested the hike in electricity tariff and sadly, yesterday, they slammed us with fuel [price] hike at a time countries like Ghana and Canada are giving out palliatives to cushion the effects of coronavirus pandemic. It is difficult to cope in this circumstance.
“Do we still wonder why unemployment and insecurity have increased? This is disgustingly shameful. We urge government to listen to the voice of reason and reverse the [petrol] price immediately.

“Stop pushing Nigerians to the wall. This is too daring.

“The Congress is calling a meeting of its organs to take decisions on this obnoxious move.

“The dead are dying again; stop killing the dead!”
The President of Nigeria Labour Congress, NLC, Ayuba Wabba, said in Abuja penultimate Thursday that the NLC and TUC would convoke a meeting to deliberate on modalities for an industrial action.
“Clearly, the action of the Federal Government is most insensitive and an affront to the Nigerian people who are bearing heavy burden of the COVID-19 pandemic. Everywhere in the world, governments are granting various types of palliatives but ours is interested in piling more miseries on its citizens. We will resist this latest move to impoverish the mass of the working people,” he said.
The President of African Region of Public Service International (PSI), Peters Adeyemi, also condemned the increment. Adeyemi, who is also the General Secretary of Non-Academic Staff Union of Educational and Associated Institutions (NASU), accused government of insincerity, saying it was the first government in history that increased petrol price without introducing palliatives.
He recalled that in June 2016 when the Buhari government removed subsidy, it said it had made provision for N500 billion intervention fund, which labour later found to be a lie.
Pundits, therefore, wonder if at all the present government of Muhammadu Buhari has any care for the welfare and general plight of the citizenry who are now finding it extremely difficult to make ends meet in the face of unholy hikes in the prices of food commodities and general cost of living.

Specifically, Nigerians question the rational of declaring amidst fanfare that Nigeria’s Foreign Reserve has increased by USD70m in only one week in the last week of August 2020. They ask of what importance is any increase in the nation’s Foreign Reserve to the common citizen when in essence he cannot feed his family, enjoy adequate electricity within the comfort of his home and transport himself and his family with relative ease whenever the need arises?

Barrister Abigail Dodorie, a public commentator, said the issue is not only sad but unfortunate as well, adding that “the Federal Government should in fact bury itself in shame for even venturing to make such declaration, forgetting that Nigerians are more than any time before living such a very difficult life, no thanks to the FG’s insensitivity to the plight of the Nigerians.

“This government has received the highest and widest goodwill of Nigerian people but this is the best way it deems fit to appreciate and reward us by making sure we become paupers in our richly endowed and blessed nation. It is really a shame.”