Following the announcement of the planned increment in electricity tariff, the Manufacturers Association of Nigeria (MAN) has cried that the move will affect profits, operational costs of production and new employments.

These challenges they lament will eventually be passed on to consumers who would have to pay more from their already stretched finances.

The Director-General of the organisation, Segun Ajayi-Kadir stated this in an interview with the News Agency of Nigeria while reacting to the planned increment of electricity tariff that is to commence from July 1.

“You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery, and chemicals manufacturing.

“A spike in the electricity tariff will erode the profit margin of the manufacturers and reduce their ability to expand operations and create new jobs.

“Also, the sector’s competitiveness will definitely worsen as the high cost of the products will make locally produced items less competitive, when compared with imported alternatives,” he said.

While most Nigerians groan about the weight of the high cost of foodstuffs, they have called for reviews of the electricity increments. However, the Nigerian Electricity Regulatory Commission (NERC) have come out to defend the rise. They claim that it is because of the removal of fuel subsidy, high inflation and a change in the exchange rate which went from N441 to N750.

Agayi-Kadir further informed that manufacturers spent nothing less than N144.5 billion in substitute energy in 2022. In 2021 it was N77.22 billion. This he said is an obvious increase of 87 per cent.

“Care should be taken to avoid introducing burdensome measures that will further strangulate the manufacturing sector and the whole economy,” he advised.