Organised labour, opposition leaders, and economic experts have strongly opposed the federal government’s planned removal of electricity subsidies, warning it will deepen poverty, cripple businesses, and further weaken Nigeria’s fragile economy.
Acting General Secretary of the Nigeria Labour Congress (NLC), Comrade Benson Upah, cautioned that the policy would plunge millions of households into “darkness, misery, distress, poverty, and resentment against the state.”
His remarks followed Finance Minister Wale Edun’s disclosure after a recent cabinet meeting that government would gradually phase out subsidies, adopt a pay-as-you-go model, and implement targeted tariff hikes for heavy consumers. The reforms are projected to save over ₦1 trillion annually under a debt refinancing plan.
Labour insists the policy would devastate both citizens and businesses.
“The business community will equally be hard-hit, as high tariffs are not good for business anywhere. We expect higher production costs, closures, lay-offs, and an inevitable spike in social threats to society,” Upah warned.
He accused government and power companies of forging “an unholy marriage” that perpetuates inefficiency, noting that privatisation has failed to improve supply despite massive public spending. Upah stressed that the NLC is mobilising its structures and “will respond” once government action becomes concrete.
The union’s concerns align with the U.S. Department of State Human Rights Report (August 12), which flagged that Nigeria’s new ₦70,000 minimum wage equivalent to $47.90 monthly remains below the poverty line amid currency devaluation. The report also cited weak enforcement and exemptions that leave many workers outside wage protection.
Former PDP National Chairman, Prince Uche Secondus, urged President Bola Tinubu to reconsider.
“This is not the time to play with the welfare of Nigerians. Rather than add to their burden, the President should think of how to lessen it,” he said.
Economist Gabriel Adewuyi called the move “ill-timed,” stressing that subsidy removal without cushioning measures would be disastrous.
“Even advanced countries subsidise their citizens. Tinubu should focus on increasing production and creating industries, not compounding hardship,” he argued.
Opposition coalition spokesman, Mallam Bolaji Abdullahi, accused the government of insensitivity.
“How much is ₦70,000 worth today? A bag of rice is more than the minimum wage. Welfare and security are government’s primary duties yet both are missing,” he declared.
With labour vowing resistance, opposition leaders mobilising, and experts warning of severe consequences, fears are mounting that subsidy removal could spark nationwide protests and industrial action.
