In September, the Federal Government announced plans to implement a minimum wage of N70,000, pledging to pay civil servants back pay for July and August. However, this news has not been met with widespread enthusiasm among Nigerians, largely due to a significant increase in electricity bills.
According to a recent report from the Foundation for Investigative Journalism (FIJ), average minimum wage earners spend approximately 57.3 percent of their salaries on electricity if they use only seven appliances in a month. While the wage increase is a step forward for workers, the high cost of living has rendered it nearly ineffective.
The report highlights the burden of electricity expenses on workers' incomes. Documents from the National Income, Salaries and Wages Commission (NISWC) indicate that civil servants under the Consolidated Public Service Salary Structure are set to earn N930,000 annually, translating to around N77,500 monthly for minimum wage earners.
The Nigerian Electricity Regulatory Commission (NERC) implemented a 300 percent increase in electricity tariffs for certain customer categories in April. Vice Chairman Musliu Oseni stated that customers who previously paid N66 per kilowatt-hour would now face charges of N225 per kilowatt-hour. This increase primarily affects users in the Band A service category, which comprises about 15 percent of the customer base.
Despite the tariff hike, many customers were transferred to the Band A category without prior notice, leading to public outcry. On social media, financial expert Joe Abah expressed frustration, noting that his electricity top-up of N100,000 now lasts only seven days. Others echoed similar sentiments, voicing anger over the sudden changes.
Small business owner Chidi Adum criticized the exorbitant tariffs and the lack of notification regarding the switch to Band A. Civil servant Ayodele Dipo, who lives in Lagos, reported that his electricity costs have surged since being moved to Band A, consuming most of his earnings. "Before, a N5,000 credit would last me two to three months, but now it barely lasts a week," he lamented.
Kenneth Enobong, a security guard, noted that the new minimum wage has not improved his situation, stating, "The electricity distribution companies seem to have been waiting for the new minimum wage to implement these hikes." He emphasized the need for food and healthcare, suggesting that electricity costs must take a back seat.
Mrs. Gladys Ameh, a cleaner with the Nigeria Airspace Management Agency, also criticized the high electricity bills, stating that they consume nearly her entire salary. "The new minimum wage isn't sufficient; we would have been better off with the old rates," she remarked.
Dr. Pogu Bitrus of the Middle Belt Forum called the situation "unfortunate," noting that Nigerians are facing financial strain from both electricity and fuel costs. He pointed out that while civil and public servants represent a fraction of the population, the rising costs affect everyone.
He urged the government, particularly the All Progressives Congress (APC), to reevaluate its governance approach and address the ongoing economic challenges. "Policies like the electricity hike should be revisited," he stated, emphasizing that the government's actions should not impoverish citizens while attempting to develop the nation.
Echoing Dr. Bitrus' concerns, Mr. Kevin Abayomi, an electrical engineer in Lagos, shared that his company had been warned to turn off all appliances at the end of the workday due to a massive increase in their electricity bill following the switch to Band A. "Our bill jumped from N90,000 to N500,000 per month," he revealed, highlighting the widespread impact of the tariff hike on both low-income earners and the elite.
As Nigerians grapple with rising costs and stagnant wages, many are calling for urgent government intervention to alleviate the financial burden of electricity expenses.
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