The Manufacturers Association of Nigeria (MAN) has said electricity tariff increased by at least 186 per cent in the last eight years, making another increase if 40 per cent at this time unjustifiable.
The association also warned of the ripple effects of the planned tariff increase on the economy if it is not stopped.
There is a proposed 40 per cent hike in electricity tariff with effect from July 1, 2023. Nigerians have kicked against the proposal, with government assuring that there will be no increase.
Director General of MAN, Mr. Segun Ajayi-Kadir, in a statement, said manufacturers spent at least N144.5 billion on sourcing alternative energy in 2022, up from N77.22 billion in 2021, which translates to about 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year.
According to him, the fact that government itself owes N75 bllion in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.
MAN further stated that the absence of stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers.
According to the association, 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,” it added.
