The Manufacturers Association of Nigeria, MAN, has stated that the proposed plan to adjust electricity tariffs will translate to an increase in cost of goods and services.
This was disclosed by Mr Okwara Udensi, Chairman of the Manufacturers Association of Nigeria (MAN), Edo/Delta branch in Benin on Wednesday.
Mr. Udensi said the Nigerian economy was not ready for adjusted earnings in power due to a recession, pointing out that the increase would affect operations of SMEs, forcing closures.
- “The economy is in a bad shape, we are in recession, so an increase in electricity tariff will translate to an increase in the cost of goods and services. Besides, the purchasing power of the people is low and people will not buy goods produced at very high cost and this will lead to most SMEs becoming moribund.”
MAN warned that operations would raise the cost of production and rather than being taxed with increasing costs, manufacturing companies needed the Nigerian government to pull Nigeria out of recession.
What you should know
- Nairametrics reported that electricity distribution companies started the year with a further increase in electricity tariffs, following a new order issued by the Nigerian Electricity Regulatory Commission, NERC, instructing DisCos to increase tariffs effective January 1, 2021.