LAGOS, Nigeria (VOICE OF NAIJA)-The Manufacturers Association of Nigeria (MAN) has reported the closure of over 300 companies and the loss of 380,000 jobs since the power tariff hike in April 2024.
Senator Ahmed Abdulkadir, speaking on behalf of MAN, disclosed this on Tuesday in Abuja during an investigative hearing organized by the Joint Committees on Power, Commerce, National Planning & Economic Development, and Delegated Legislation.
The National Electricity Regulatory Commission (NERC) increased the power tariff from N66 to N225 per kilowatt (kW) in April for customers in Band A who receive 20 hours of electricity supply daily.
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Mr. Abdulkadir noted that manufacturers have observed that electricity-related expenses account for about 40% of production overhead, significantly impacting the sector’s fortunes.
He called on the Bola Tinubu government to address the rising worker layoffs caused by the high cost of doing business and the hike in electricity tariffs. He mentioned that one company, which had employed around 360,000 workers, was forced to reduce 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 distribution companies (discos) failed to comply with the guidelines for consumer consultation before applying to NERC for the tariff increase.
However, at the hearing, the Minister of Power, Adebayo Adelabu, explained that the Federal Government could not afford the N3 trillion electricity subsidy. As a result, his ministry decided to remove electricity subsidies for Band A customers to prevent mounting government debts.