Manufacturers and Organised Labour have kicked against Wednesday’s electricity hike by the Federal Government.

The Bola Tinubu administration has approved 240 per cent hike in the tariff payable by electricity users enjoying a 20-hour power supply.

But manufacturers and Labour have insisted on the electricity subsidy, warning that its removal would send manufacturers out of business and worsen inflation.

The subsidy on electricity has been withdrawn completely from the tariff payable by power consumers in the Band A category, who constitute about 15 per cent of the total number of power users across the country.

The government announced the hike in the electricity bill at a press briefing in Abuja by NERC on Wednesday, adding that those affected would now pay a tariff of N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase. The government declared that the decision took effect from Wednesday (yesterday).

But the organised private sector, Nigeria Labour Congress, as well as the Trade Union Congress, kicked against the hiked tariff for power users, whether it was for those on Band A or not.

They argued that the hike in tariff would send manufacturers out of business, worsen inflation, and stifle small and medium enterprises, adding that no place in Nigeria enjoyed up to 20 hours of power supply daily.

Band A power users are those who get up to 20 hours supply of electricity daily and paid about N68/kWh before the implementation of this latest order by the Federal Government through NERC.

The Vice Chairman of NERC, Musiliu Oseni, told journalists in Abuja that the government could not sustain subsidy on electricity and had to devise ways to cut down the about N2.9tn that would be spent on power subsidy this year.

He explained that customers on Band A represented 15 per cent of the over 12.82 million registered electricity consumers across the country, adding that the commission had also downgraded some customers on this band.