The Manufacturers Association of Nigeria (MAN) has criticized federal government’s decision to hike electricity tariff by 40% and demanded for subsidy to cushion the effects on her members who are increasely finding it difficult to survive the turbulent Nigerian business environment.
President of MAN, Otunba Francis Meshioye who stated this in an interview with the Arise TV, noted in dismay that the sector has become uncompetitive due mainly to the high cost of generating electricity among others.
Otunba Meshioye who recalled that in the last eight years of former President Buhari’s administration, electricity tariffs had gone up by 186% which represents about 30% of the industry’s revenues and led to the high cost of performing business within the nation.
“The major thing is that within the period where this price was increased it was a time where we have not agreed that the price should be increased. This cost should not be passed on to the manufacturers.
It was increased two times before the time. This made MAN have crude debts to the DisCos. This is what we’re telling governent; that this should not be added to our costs because is not what we agreed on.”
Meshioye described the increase as outrageous saying, “This has been an issue over the time. What we have been experiencing is intimidation over our businesses. They will go to our businesses, disconnect the electricity and then nothing will happen.”
As a solution to the energy crisis in the sector, MAN President asked that ‘special rates’ be allotted to manufacturing companies as well …as this arrangement would encourage competition and woo investors as well.
”Encouraging private sectors to invest is very key. That will add competitiveness in the supply value chain of the electricity.
“One, Be sure that you meter everyone and ensure they are connected to the grid. Run an efficient system and encourage competitiveness. Look for alternate source of emitting power.
“Apart efficiency in the supply chain, what manufacturing could do using gas and everything. Let me tell you, we don’t have a special tariff on gas so we enjoy seriously. But you remember that manufactures have even complained to NERC on a couple of things. We have a road map on how the tariff should be increased. But you find that NERC will just increase it arbitrarily without the due consultation.
“This is unfair. We need to be sure that if we agreed on a road map, you follow that road map”
Apart from the electricity tariff increase, the MAN president noted other factors affecting the expansion of the sector to include multiple taxation from various arms of government at both state and local level; logistics from ports which can cause delays, ineffective transportation systems and “astronomically high” interest rates.
