Economy

Manufacturers’ Association Highlights Unsustainability of 250% Electricity Tariff Hike

Written by Agboola Oluwafemi on October 16, 2024

News Views: 275

The Manufacturers Association of Nigeria (MAN) has once again urged for a reconsideration of the electricity tariffs set forth by the Nigerian Electricity Regulatory Commission (NERC), which have led to an astonishing 250 percent surge in costs. The association asserts that such a drastic increase is untenable for manufacturers, jeopardizing their operational viability.

During an interactive session at the 2024 pre-Annual General Meeting (AGM) media briefing held in Lagos yesterday, MAN’s Director General, Segun Ajayi-Kadir, articulated the association’s concerns.

It is noteworthy that MAN previously initiated legal proceedings against NERC and the distribution companies (DisCos) regarding this issue; however, a Federal High Court dismissed the case last week, citing abuse of the court process.

Ajayi-Kadir proposed that the government extend similar concessions to manufacturers as those granted to universities and hospitals, which have received a 50 percent tariff reduction.

He asserted, “NERC and the DisCos are misguided in their actions; they could not have justified a 250 percent increase in tariffs, as no business can endure such a burden. This is evidenced by the federal government’s decision to offer a 50 percent discount to universities and hospitals. If such an increase were reasonable, the government would not have implemented this measure. Manufacturers, like these institutions, deserve similar discounts because we generate employment, fulfill tax obligations, and contribute significantly to the enhancement of Nigeria’s exports.”

Ajayi-Kadir continued, “We are currently consulting with our legal advisors and members. Many are increasingly agitated and concerned about the sustainability of their businesses. Some have even suggested that we may need to cease operations and send our workers home in hopes that the government will take notice.”