By: Bayero Ade
The Manufacturers Association of Nigeria (MAN) has expressed concern over the continuous increase in electricity tariffs, warning that it is severely affecting the manufacturing sector and overall economic growth.
According to Afripost, In a statement on Thursday, MAN’s Director-General, Segun Ajayi-Kadir, emphasized that electricity is crucial for production, directly influencing costs and the pricing of goods. He noted that without stable and affordable energy, industrial growth would remain stunted.
According to Ajayi-Kadir, persistent tariff hikes weaken the competitiveness of Nigerian manufacturers, increase production costs, fuel inflation, and reduce consumer purchasing power. He cautioned that this situation could lead to lower sales, reduced profits, business closures, and job losses.
Reflecting on the 2013 power sector privatization, he lamented that it has failed to deliver the expected improvements, largely due to inefficiencies and financial constraints among electricity providers. Despite a series of tariff increases, electricity supply has remained inadequate, with Nigeria still generating only about 10,000MW, far below the estimated 30,000MW needed to support businesses and households.
Citing data from the National Bureau of Statistics, he highlighted a decline in electricity supply from 5,909.83GWh in Q2 2023 to 5,769.52GWh in Q1 2024, and further to 5,612.52GWh in Q2 2024, despite tariff increases of over 230%.
MAN has called on the government to reassess the performance of electricity distribution companies (DisCos) following the latest tariff adjustments. The association also urged a review of the cost-reflective tariff model used by DisCos, as well as an audit of their investments in distribution infrastructure.
Meanwhile, the federal government has denied reports of a planned 65% electricity tariff hike, assuring Nigerians that its focus remains on improving power supply, implementing targeted subsidies, and expanding metering across the country.
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