The Minister of State, Labour and Employment, Festus Keyamo, has revealed the details of the meeting between President Muhammadu Buhari-led government and labour union over the new price of fuel and electricity tariff.
Recall that Labour unions suspended their planned strike due to an agreement with the Federal Government on electricity tariff.
He stated that the representatives of both parties agreed on VAT to be used as temporarily subsidize tariffs.
According to Keyamo, the new agreement involves using Value Added Tax (VAT) from Nigeria Electricity Supply Industry (NESI) to give relief to customers within the Bands A, B, and C affected by the recent cost-reflective electricity tariff.
The Minister who took to his Twitter account noted that representatives of Labour, government and Electricity Distribution Companies, have reached a new agreement.
According to the agreement, the relief will be for a period of 2-3months, where customers will get N10.20 per KWh which will be sourced from the proceeds of NESI VAT.