June 26, (THEWILL) – The Manufacturers Association of Nigeria (MAN) has condemned the planned 40% hike in Nigeria’s electricity tariff by Distribution Companies (DisCos) effective July 1, 2023.
MAN, in a statement signed by its Director General, Segun Ajayi-Kadir, warned of the gross ripple effects of a tariff hike on the country’s economy if urgent steps are not taken to halt the decision.
Lamenting the effects, Ajayi-Kadir, who noted that in the last 8 years, the electricity tariff has been increased by 186%, said manufacturers spent at least N144.5 billion on sourcing alternative energy in 2022, up from N77.22 billion in 2021.
This, he said translates to about 87% increase in the cost of access to alternative energy sources by manufacturers within a year.
Ajayi-Kadir said the absence of a stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers, adding that the worrisome development has compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources.
“Regrettably, the available alternative energy sources such as diesel have become exorbitantly expensive.”
“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,” he said.
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