Manufacturers Association of Nigeria (MAN) on Tuesday expressed grave concern over the ripple effects of the recent hike in electricity tariff which has resulted into closure of over 300 companies and 380,000 job losses over the past two months.

Senator Ahmed Abdulkadir who spoke on behalf of MAN in Abuja, during the investigative hearing into organised by the Joint Committees on Power, Commerce, National Planning & Economic Development and Delegated Legislations, observed that In fact, electricity related expenses of a manufacturing concern constitute about 40% of the production overhead.

Worried by the decking fortune of the manufacturing/real sector of the Nigerian economy, he underscored the urgent need for the present administration to address the rising case of insecurity, as more workers may be disengaged due to high cost of doing business occasioned by the astronomical hike in electricity tariff.

According to him, one of the companies which employed about 360,000 workers has drastically reduced its workforce to about 5,000 due to the present economic realities.

He explained that the Association is only aware of the initial case hearing held sometime in 2023 for a 40% increase in the electricity tariff rate and not an astronomical increase of over 200% targeted at 15% of the NERC’s customers including major stakeholders of the Nigerian economy today.

“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 Kwhr was never brought to the notice of the public as noted by NERC,” Senator Abdulkadir noted.

He also alleged that the Discos had surreptitiously failed to comply with the Guidelines for consumer consultation before applying to NERC for the increase of the electricity tariff rate.

In his address, Minister of Power, Mr. Adebayo Adelabu disclosed that the introduction of Band A which has higher tariff has reduced electricity subsidy to N1 trillion from approximately N3 trillion.

Mr. Adelabu explained that without an increase in electricity tariffs, the subsidy would have surged to about N3 trillion, a figure the government could not afford.

While presenting NERC’s position, Mr. Sanusi Garuba disclosed that energy invoices submitted by the DISCOs was N260 billion per month, while the GENCOs pay the sum of N20 billion.

According to him, the 2023 fiscal year closed with the electricity subsidy of N460 billion as a result of GENCOs refusal to pay for the gas supply.

He maintained that the change in government’s economic policy as announced by the current administration in May 2023 which led to the fuel subsidy removal, hike in foreign exchange, among others have significant correlation with the hike in electricity tariff.

While noting that the N240 billion electricity subsidy per month in 2024 fiscal year is unsustainable, he noted that the country cannot afford the N2.8 trillion for this year.

According to him, the only budgetary provisions in the 2024 Appropriation Act stands at N450 billion.

While declaring the hearing open, Speaker Tajudeen Abbas who was represented by his Deputy, Hon. Benjamin Kalu affirmed that the hike in the electricity tariff “has not been well-received by our citizens. Numerous voices, including organized labor and industry experts, have voiced their strong opposition to this decision.

“The fears expressed by many are valid – that such a sharp increase in electricity tariffs will only exacerbate the economic hardships already faced by our people. There are genuine concerns that higher utility bills resulting from this tariff hike could have a ripple effect on operational costs for businesses, potentially leading to increased prices for goods and services.”

Speaking earlier, chairman, House Committee on Power, Hon. Victor Nwokolo explained that the special committee was set up pursuant to a resolution of the House approving an investigation into the circumstances and rationale for the recent tariff review announced by the Nigerian Electricity Regulatory Commission.

According to him, “NERC as regulator of the Nigerian Electricity Supply Industry (NESI) approved a request by the eleven distribution companies to increase tariff for the so-called Band A customers from N64 to N225 per kilowatts hour. NERC announced that by this new tariff, customers in Band A would be receiving at least 20 hours of electricity supply everyday.

“Since this announcement, we have received a lot of complaints about misgivings on both the process and the substance of the regulatory action of NERC.

“Many of the complaints relate to the lack of consultation by the regulator as required by law before approving the increase. Others relate to the lack of 20 hours of electricity supply as promised by the regulator which has not been delivered.”

Source: https://tribuneonlineng.com/Electricity-tariff-Over-300-companies-shut-down-380,000 -jobs-lost-within-two-months-MAN

Tinubu has not created a single job since coming on board.

It has been job losses all through since he grabbed power.

Toh

Bobloco:
Tinubu has not created a single job since coming on board.

It has been job losses all through since he grabbed power. 

So the farmers that the CBN gave loans to their micro finance banks for fair distribution na what?

The social intervention programs which people have applying, do the selected people only use the money to eat Akara?

Tinubu have crippled the economy, this is too bad and unfair. I expected Tinubu do better than Buhari but the reverse is the case now. He built Lagos, he built Lagos and he is destroying Nigeria

helinues:


So the farmers that the CBN gave loans to their micro finance banks for fair distribution na what?

The social intervention programs which people have applying, do the selected people only use the money to eat Akara?

What has been the results of all these your so-called intervention programs

Bobloco:


What has been the results of all these your so-called intervention programs

So you want to plant in a day and harvest that same day?

helinues:


So you want to plant in a day and harvest that same day?

Remind me of this during harvest

Bobloco:


Remind me of this during harvest

Are you traveling to somewhere?

ezechi24:


Saintganduje please come o....the man you really want to help has ran mad again

Hahahah, someone is making use of an average 10 monikers to troll 1 moniker in a day, 10x7 ?

Who do you think is already running mad here.

Not surprised that some people are hailing the activities of the guy on this forum, but unfortunately, whenever we asked them if they can spend just a day to troll others, there responses have always been " When I am not mad".

People hailing you sometimes, might be out of wickedness

helinues:


So the farmers that the CBN gave loans to their micro finance banks for fair distribution na what?

The social intervention programs which people have applying, do the selected people only use the money to eat Akara?

Saintganduje please come o....the man you really want to help has ran mad again

Those companies should go and check why they ran out of business.

For goodness' sakes, we don't even have stable electricity in this country, meaning that generators support 80% of our economy.

If you can use 200k to run your factory generator every month, why can't you pay 100k in power bills?

helinues:


So the farmers that the CBN gave loans to their micro finance banks for fair distribution na what?

The social intervention programs which people have applying, do the selected people only use the money to eat Akara?

Your medical condition is not getting better.

helinues:


Are you traveling to somewhere?

The reason I said you should remind me of this so-called harvest is that naturally, during harvest, prices are meant to crash, but since Tinubu came on board with his calamitous economic policies, prices of goods and services are going up and out of reach of the common man even during harvest.

Bobloco:



The reason I said you should remind me of this so-called harvest is that naturally, during harvest, prices are meant to crash, but since Tinubu came on board with his calamitous economic policies, prices of goods and services are going up and out of reach of the common man even during harvest.

It would be unreasonable to say this government has not been trying their best in putting things in order even though they can do more better, but are the Nigerians themselves ready to contribute their own quota towards the development of the country?

Take the attitude of the Super Eagles players in their last match with Benin, how are they different from the politicians in disappointing?

Which of the government sectors would go for service without paying bribe if you need whatever urgently? Are those also politicians?

Is this how the Lagos was allegedly built by Tinubu?


My experience at ijebu ogbere in Ogun state showed that Yorubas outside Lagos are mere clannish lazy praise singers of mediocres

helinues:


So you want to plant in a day and harvest that same day?

Hell, can't close your mouth for once as you never have anything to say?

SoNature:
Those companies should go and check why they ran out of business.

For goodness' sakes, we don't even have stable electricity in this country, meaning that generators support 80% of our economy.

If you can use 200k to run your factory generator every month, why can't you pay 100k in power bills?

Which factory spends 200k on generator? Unless you are a pure water factory using 4.5kv and petrol. Big factories run on diesel and big generator which can use 5 to 10k litres a week depending on number of shifts.

I'm OK with the increase, I now have light 24 hours a day.

Since they restored the light after that their labour strike, my meter de run 247 till now

0001Lagos:

You talk like a little child ..

Which factory uses prepaid meter with all those heavy equipments ?

You're not even exposed as person, you're probably still living and feeding off your parents.

Can Cadbury operate on prepaid meters?

Can dangote Total operate on prepaid meters?

Even big hotels can't operate on prepaid meters talk more of Multi national companies with heavy duty equipments in their factories .


You're still a little child still feeding off your parents so don't talk when MEN are talking .

You are correct that most corporates operate on post-paid arrangements with discos. However, the question remains: why are they shutting down now, despite relatively available and cheaper power in band A areas (compared to alternatives-diesel) ?

May God deliver Nigeria from generation long problems,

Toh

That's Tinubu's democracy package 📦 for Nigerians

nedu666:


Which factory spends 200k on generator? Unless you are a pure water factory using 4.5kv and petrol. Big factories run on diesel and big generator which can use 5 to 10k litres a week depending on number of shifts.

Don't mind them. They know better than the management of the companies that are leaving the country.

SoNature:
Those companies should go and check why they ran out of business.

For goodness' sakes, we don't even have stable electricity in this country, meaning that generators support 80% of our economy.

If you can use 200k to run your factory generator every month, why can't you pay 100k in power bills?

Clap for yourself bro. You know better than the management of the companies that have wound down operations on this ces-s-pi-t. You know better than all the members of MAN.

That Adelabu is just a wicked vile man, like his Oga the tax collector...

Just collect, collect and collect without considering the masses first... In fact, bible never lies... When the evil are on power, the people suffer

Tunubu, Give us more shege

helinues:


So the farmers that the CBN gave loans to their micro finance banks for fair distribution na what?

The social intervention programs which people have applying, do the selected people only use the money to eat Akara?

The same type of job trade Moni of Buhari and Osibanjo produced?

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