MAN warns against proposed electricity tariff hike 

 

Ahead of a proposed 40 percent hike in Nigeria electricity tariff effective July 1, 2023, the Manufacturers Association of Nigeria (MAN) has warned of the ripple effects of the development on the country’s economy if urgent steps are not taken to halt the decision.

The body, which represents the production industry in the country, said manufacturers spent at least N144.5bn on sourcing alternative energy in 2022, up from N77.22bn in 2021, which translates to about 87% increase in the cost of access to alternative energy sources by manufacturers within a year.

Director General of MAN, Mr. Segun Ajayi-Kadir, in a signed statement said in the last 8years, electricity tariff has been increased by 186% and affirmed that the fact that government itself owes N75 bllion in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.

MAN said the absence of stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers, saying the worrisome development has compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources.

However it said, “Regrettably, the available alternative energy sources such as diesel have become exorbitantly expensive.”

It said: “Therefore, it is highly concerning for manufacturers to witness the electricity tariff skyrocketing beyond the present embattling high prices, starting July 1. A 40% hike at this time is simply outrageous.