The Manufacturers Association of Nigeria has called for a reduction in the recent electricity tariff hike approved by the Nigerian Electricity Regulatory Commission.
The increase, which has resulted in a 250% rise in electricity tariffs for distribution companies (DisCos), is considered too high for manufacturers to handle, according to MAN.
The Director General of MAN, Segun Ajayi-Kadir, made this statement during an interactive session at the 2024 pre-Annual General Meeting media briefing in Lagos. He emphasized that no manufacturer can survive such a sharp increase in electricity costs.
Ajayi-Kadir noted that while the association took legal action against NERC and the DisCos, the case was dismissed by the Federal High Court last week for “abuse of court process.”
He urged the government to provide manufacturers with the same 50% discount on electricity tariffs that was recently given to universities and hospitals.
In his words, “NERC and the DisCos are wrong because they could not have increased the tariff by 250%. Nobody survives that. And this is evident in the fact that the federal government is giving a discount of 50% to universities and hospitals. If it was acceptable, government wouldn’t do that. Manufacturers are also deserving of discounts like these institutions because we create jobs, we pay taxes, and we contribute to Nigeria’s exports.”
Ajayi-Kadir added that some manufacturers are deeply worried about the future of their businesses due to the high tariffs. “Some of them are even saying that we should just shut down and allow our workers to go home, maybe the government will listen.”
MAN is currently consulting with its legal team and members to decide on the next steps in addressing the issue.
