MAN demands reduction in soaring electricity tariffs
The Nigerian Manufacturers Association is calling for a reduction in the recently approved electricity tariffs by the Nigerian Electricity Regulatory Commission, which saw a 250 percent increase.
During a media briefing ahead of the 2024 Annual General Meeting in Lagos, Director General Segun Ajayi-Kadir expressed concerns about the unsustainable nature of such a steep rise for manufacturers and highlighted the potential negative impact on the industry, as reported by Vanguard.
He recommended that the government should extend the 50 percent electricity tariff reduction granted to universities and hospitals to include manufacturers as well.
Ajayi-Kadir stressed the importance of this support for the survival of the manufacturing sector in the face of the drastic tariff increases.
According to him, "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
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Previously, MAN 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.
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