MANUFACTURERS CAUTION FEDERAL GOVT AGAINST FRESH HIKE IN ELECTRICITY TARIFF

Anthony Ekpo Bassey 

The Manufacturers Association of Nigeria (MAN) has issued a statement warning the federal government against a fresh hike in electricity tariff, noting that a further hike will lead to high production costs and will further worsen inflation in the country.

Issuing the warning yesterday, Director General of the association, Segun Ajayi-Kadir condemned the persistent tariff hikes which have had adverse impacts on the manufacturing sector and the economy of the country. He stated that: "The proposed increase in electricity tariff is inimical to the competitiveness of Nigerian products and businesses. It will exacerbate high production costs, worsen inflation, reduce disposable income, increase unsold inventories for manufacturers, erode profit margins and lead to further job losses and business closures. Ajayi-Kadir, lamented. 

According to the Director General of MAN, Rather than further increase electricity tariff he advised that: "The government should commission a review of the DisCos performance, assess the impact of previous tariff increases on manufacturers, businesses and households, critically examine the cost-reflective model, and audit the DisCos' investment in distribution infrastructure."