Organised labour has strongly opposed the federal government’s plan to eliminate the electricity subsidy, warning that such a move would deepen the economic hardship already endured by many Nigerians.
The Nigerian Labour Congress and the National Union of Electricity Employees have voiced clear resistance, arguing that the decision would lead to soaring electricity tariffs without corresponding improvements in service delivery.
Recall that the federal government recently disclosed that it had fast-tracked plans to eliminate the long-standing electricity subsidy as part of efforts to settle a N4 trillion debt in the power sector.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the decision is driven by fiscal constraints and the need for budgetary discipline.
“Going forward, that programme has been built as well, looking at ways of making sure that collections increase, making sure that there’s more of a pay-as-you-go approach that doesn’t leave government with a bill to pay,” Mr Edun said at a media conference.
He further explained that the government seeks to avoid burdensome power purchase agreements by encouraging private sector investment.
“The idea is to replace them with somebody who invests in power and sells it. So you don’t invest in power generation to hang it on the government to pay you no matter what happens at the other end,” he added.
According to reports, the removal of the subsidy could result in a sharp increase in electricity tariffs, with average rates potentially rising from N66 per kilowatt-hour (kWh) to N209/kWh, aligning with the current Band A tariff. As of June 2025, the government’s subsidy obligation had reached N1.186 trillion — a figure yet to be backed by actual funds. In 2025 alone, subsidy costs are projected to hit approximately N2.3 trillion, primarily to shield low-income consumers from cost shocks.
Reacting to the development, NLC Deputy General Secretary, Comrade Chris Onyeka, expressed outrage over the proposal, describing it as deceptive and exploitative.
“How can the federal government come out with such a deceptive statement, and you journalists are believing in their statements? You journalists are not helping matters or the poor at all, as you make Nigerians believe in oppressive and capitalist policies, such as the poor are getting poorer and the rich are getting richer,” he said.
“By saying they want to remove the subsidy, they indirectly announce their plan to hike the cost of the electricity tariff. Such an increment will further impoverish the poor. They milked Nigerians without an efficient electricity supply and want to hike the tariff again. If electricity is working, why did they invest billions of our money in using a solar system in Aso Rock? Isn’t it a thing of concern that we exceeded 5000mgt? Rather than improving on the current level, they want Nigerians to be paying for darkness and what they are not enjoying. It is the right time for Nigerians to cry against their anti-people policies that send Nigerians into hardship.
“It is right time Nigerians should think of accountability. They are looking for a way to enrich few hands among them at the detriment of the masses by trying to hike electricity tariff and are indirectly saying they want to remove subsidy, they should make Nigerians to know the truth.”
Also speaking to LEADERSHIP, Acting General Secretary of NUEE, Comrade Dominic Igwebike, criticised the proposed subsidy removal, saying it unfairly shifts financial burdens onto ordinary Nigerians.
“They are only interested in taking from the people which is against good governance which required that government should provide the basic needs for its people. What is government giving back [to] the people? And what is government planning to use such fund for? The plan is not in any way accepted by us,” Igwebike stated.
He emphasised that the move contradicts principles of governance focused on citizen welfare, especially at a time when Nigerians are battling inflation, unstable power supply, and economic stagnation.
Igwebike’s comments come amid broader concerns about Nigeria’s power sector, which continues to struggle with inefficiency and financial mismanagement. Many fear that higher tariffs — in the absence of reliable electricity — will only deepen public frustration and economic instability.
