The Coalition of United Political Parties (CUPP) has kicked against the hike in electricity tariff, announced by the Nigerian Electricity Regulatory Commission (NERC), mentioning the government of the day is very insensitive and “have no economic plans for the growth of the economy.
The parties described the hike as “one increase too many, government is meant to service the interest of the people and not the other way round.
CUPP General Secretary, Chief Peter Ameh, said in a statement that 240 per cent increase in tariff Band A consumers would lead to further increases in costs of goods.
The statement reads in part: “This government is very insensitive. They have no economic plans for the growth of the economy
“They do not think about the effect of a lazy policy of solving immediate downstream sectors.
“Now, the cost of production by local manufacturers is inevitably going to increase, some factories will close up or relocate, which will further worsen the dollar-naira ratio that President Bola Tinubu is using the romance economy to solve.
“The increase is anti-people, anti-small businesses, and anti-social welfare measures which will further push our people into multi-dimensional poverty.
“Remember that earlier in the year, the World Bank and IMF came out to ask the Nigerian government to end subsidy on electricity. The introduction of Band A, which covers about 15% of all consumers in Nigeria and which in reality does not exist (because no area or part of Nigeria enjoys anything close to 20 hours of electricity) might not even end there. As time goes on, the government, through NERC will extend the increase to the non-Band A customers, thereby increasing the burden on the already worsening situation of the masses. This may not be at the rate of 240%, but definitely, there will be an increase on the groaning low income earners.
“This astronomical increase is unexpected and will likely continue to unleash harsh economic effects on our people.
“The effects of the 240% tariff increase on Band A consumers is that it will trigger a cost push inflation whereby the cost of the tariff imposed on the producers of goods and services will be pushed to consumers.”
