By Ahmed Rahma
The Manufacturers Association of Nigeria (MAN) has hailed the federal government for hearing its plea and suspending the recent hike in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC).
MAN described the directive by the FG to suspend the implementation of the proposed electricity upward adjustment as a temporary relief.
Reacting to the directive, the Director-General of the association, Mr Segun Ajayi-Kadir, said the three weeks respite was to accommodate the spirit of the agreement between the Labour Union and the Federal Government on the tariff increase.
Business Post had earlier reported that NERC has approved another hike in electricity tariff, less than two months after the last increase, citing the partial impact of inflation and movement in forex as the rationale for the action.
“Though there is a possibility that the increase may be reconsidered during this period, there is no doubt that the National Electricity Regulatory Commission is already anticipating an increase.
“This is why the call for circumspection and pragmatism in the matter of increase remains relevant.
“No matter what becomes the outcome of the Ad-Hoc Committee’s work, an increase at this time is ill-timed and not manufacturing friendly,” the head of the manufacturers’ body said.
The DG urged the government to go beyond the reasons given for the timed suspension, to include consultations with other economic actors, such as the manufacturers.
“They are the major consumers of electricity and they are the ones whose businesses will be most impacted by the increase.
“The sector is already groaning under inclement operating environment, including the debilitating impact of COVID-19 disruptions and deteriorating infrastructure.
“It is, therefore, important for us to avoid this additional burden,” he said.
The FG had suspended the hike on Wednesday stating that it was to allow Joint Ad-Hoc Committee to work until the end of January 2021.
