The President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has strongly criticized the banding system currently being used by electricity service providers in Nigeria, describing it as “another form of fraud.” This comes in response to the recent announcement by the Federal Ministry of Power that they are considering an increase in electricity tariffs.
Comrade Ajaero made these remarks during his visit to Yola, the capital of Adamawa State, for the National Executive Committee (NEC) meeting of the NLC. Speaking to journalists shortly before the meeting, he expressed deep concerns over what he sees as the failure of the electricity sector to provide adequate services, despite the introduction of the controversial banding system and increased tariffs.
The banding system, which categorises electricity consumers into different groups (A, B, C, and D), has been a topic of debate in Nigeria’s power sector. Ajaero argues that the system is a deceitful way to charge higher tariffs from Nigerians without improving the quality of services provided.
“This banding ABCD the electricity providers are using is another form of fraud, it’s 419,” Ajaero said, referring to the popular Nigerian term for fraud. “Whether you are in band A or D, the service is poor. They are just using it to defraud Nigerians, and we will oppose any attempt to increase electricity tariffs.”
Ajaero highlighted that the introduction of the banding system had not led to any noticeable improvement in power supply. In fact, he pointed out that many Nigerians are still facing long periods without electricity supply and continue to struggle with outdated or non-functional metering systems.
“The charges have increased, but the services still remain the same,” he noted. “In fact, in some areas, people don’t get electricity for days, and many don’t even have meters.”
The NLC President also voiced his opposition to the Ministry of Power’s proposal to review and increase electricity tariffs. Ajaero made it clear that, under the current deregulated system, the federal government no longer has the authority to directly raise electricity tariffs. He insisted that any changes to tariff rates must go through the Nigeria Electricity Regulatory Commission (NERC), which is required by law to consult widely with relevant bodies, including consumer protection agencies and the labour movement, before making any decisions.
Ajaero stated, “Before any increase is made, it has to be through the Nigeria Electricity Regulatory Commission, which would have a wider consultation with relevant bodies like consumer protection agencies and the labour movement.”
The NLC President argued that the Labour movement would oppose any attempts to raise tariffs, stressing that the current situation in the country’s electricity sector is already unbearable for most Nigerians.
“The pains we are going through are better imagined than explained. But we are doing our best to help the common man,” he said.
While he expressed strong opposition to electricity tariff hikes, Ajaero also took a moment to highlight a recent success for the NLC. He revealed that the planned 100% increase in telecommunications tariffs, which would have raised the cost of mobile phone calls, had been reversed after the NLC’s intervention.
“The planned increase of telecommunications tariffs by 100% has been shelved. The charges on your mobile phone calls are now back as they were,” Ajaero said. “We had a long meeting with the sector’s service providers recently, and they saw reasons with us.”
In addition to his comments on the power and telecommunications sectors, Ajaero also addressed workers’ welfare, noting that the Labour movement had made significant strides in improving the conditions of workers in Nigeria. He highlighted that, as a result of ongoing efforts, no public sector worker now earns less than N70,000 per month.
“Let me tell Nigerians, no worker in the public sector goes home with less than N70,000 per month,” he said proudly. “Because we know that not everybody is in the pay role of government, we encourage the federal government to embrace a cash transfer programme to help the less privileged Nigerians, and we are closely monitoring it.”
