The Manufacturers Association of Nigeria (MAN) has renewed its call for a downward review of the recent 250% increase in electricity tariffs, approved by the Nigerian Electricity Regulatory Commission (NERC) for electricity distribution companies (DisCos).
MAN argues that no manufacturer can survive such a drastic hike in operating costs.
Speaking at a pre-Annual General Meeting (AGM) media briefing in Lagos on Monday, MAN’s Director General, Segun Ajayi-Kadir, stressed the unsustainable burden this increase places on manufacturers.
He pointed out that despite legal efforts to challenge the tariff hike, the Federal High Court recently dismissed MAN’s case against NERC and the DisCos on grounds of abuse of court process.
Ajayi-Kadir urged the government to extend the same 50% tariff reduction granted to universities and hospitals to manufacturers. He emphasized that manufacturers, who contribute significantly to job creation, tax revenues, and export growth, deserve similar support.
His words: “NERC and the DisCos are wrong because no business can survive a 250% tariff hike. The federal government’s decision to grant discounts to universities and hospitals proves this point.
Manufacturers are equally deserving of such considerations. We create jobs, pay taxes, and drive exports, all of which are crucial to Nigeria’s economic development.”
He added that the association is consulting with its legal team and members on the next steps, noting that many manufacturers are deeply concerned about the future of their businesses. “Some members are even contemplating shutting down operations, which could send thousands of workers home. Maybe then, the government will take action.”
Meanwhile, MAN President Francis Meshioye revealed that the association’s 52nd AGM, scheduled for October 22-24, 2024, will focus on “The Imperatives of an Intentional Development of the Nigerian Manufacturing Sector.” The President/CEO of Africa Finance Corporation (AFC), Samaila Zubairu, will serve as the guest speaker.
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