The Manufacturers Association of Nigeria is urging a reduction in the recently approved electricity tariffs by the Nigerian Electricity Regulatory Commission which saw a 250 per cent increase.
Director General, Segun Ajayi-Kadir expressed concerns that such a steep rise is unsustainable for manufacturers, highlighting the potential negative impact on the industry during a media briefing ahead of the 2024 Annual General Meeting in Lagos, according to Vanguard.
He suggested that the government should extend the 50 per cent electricity tariff reduction granted to universities and hospitals to manufacturers as well.
Ajayi-Kadir emphasized that such support is crucial for the survival of the manufacturing sector amid the drastic tariff increases.
“NERC and the DisCos are wrong because they could not have increased the tariff by 250 percent, nobody survives that. And this is evident in the fact that the federal government is giving a discount of 50 percent to universities and hospitals. If it was acceptable, government wouldn’t do that. And manufacturers are also deserving of discount like these institutions because we create jobs, we pay taxes, and we are responsible for improvement in exports that Nigeria has.
“We are consulting with our counsel and our members. Already, some members are very agitated and worried about the survival of their businesses. Some of them are even saying that we should just shut down and allow our workers to go home, may be government will listen,” he said.
MAN previously took legal action against NERC and the DisCos over the electricity tariff increases, but a Federal High Court dismissed the case last week, citing abuse of court process.
This ruling adds to the urgency of their call for a reconsideration of the tariff adjustments.
