300 companies shut down,389,00 jobs lost in two months over electricity hike–Manufacturers Association of Nigeria
The Manufacturers Association of Nigeria has lamented the shutdown of over 300 companies and loss of 380,000 jobs since the hike in power tariff in April 2024.
Senator Ahmed Abdulkadir who disclosed this on Tuesday, in Abuja, on behalf of MAN, spoke at an investigative hearing organised by the Joint Committees on Power, Commerce, National Planning & Economic Development and Delegated Legislations.
Recall that the National Electricity Regulatory Commission, in April increased power tariff from N66 to N225 per kilowatt (kW) for customers in Band A receiving 20 hours of electricity supply daily
Mr Abdulkadir stated that manufacturers had observed that electricity related expenses of a manufacturing concern constituted about 40% of the production overhead, which has affected the sector’s fortunes.
Calling on the Bola Tinubu government to address the increasing disengagement of workers due to the high cost of doing business and the hike in electricity tariff, he stated that one of the companies which employed about 360,000 workers reduced its workforce to about 5,000 due to economic challenges.
Mr Abdulkadir stated, “Contrary to the position of NERC, we are aware that the supplementary order of 3rd April 2024 which increased the electricity tariff rate from N68 to N225 per kilowatt was never brought to the notice of the public as noted by NERC.”
He stated that discos failed to comply with the guidelines for consumer consultation before applying to NERC for the increase. .
The Minister of Power, Adebayo Adelabu, at the hearing, however, stated that the Federal Government could not afford to pay N3 trillion subsidy for electricity, hence, his ministry came up with the removal of electricity subsidies from Band A customers to stop the mounting debts for the government.
