The Manufacturers Association of Nigeria (MAN) has expressed concern over the recent 250 per cent increase in electricity tariffs, warning that it would force many businesses in the sector to shut down as no business can survive a 250 per cent tariff hike.
Speaking at a media briefing ahead of the association’s Annual General Meeting (AGM) in Lagos, MAN’s Director General, Segun Ajayi-Kadir, said the tariff hike is unsustainable as manufacturers struggle to cope.
Ajayi-Kadir called on the federal government to intervene. He suggested that manufacturers receive similar support as universities and hospitals, which were granted a 50 per cent tariff reduction.
“We wouldn’t mind if we are made to pay 100 per cent increase. But hiking the electricity tariff by 250 per cent for manufacturers is not just done. It is not sustainable. Many of our members can not afford it. Some are even thinking of shutting down,” he said.
He added that manufacturers also play a role in job creation, tax revenue, and exports, paramount to Nigeria’s economic growth. He called on the federal government to take action to prevent further damage to the manufacturing industry.
This warning came four days after a federal high court in Lagos ruled out a case by MAN challenging the implementation of the Band A electricity tariff review by the Nigerian Electricity Regulatory Commission.
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