NIGERIAN BUSINESSES DEMAND HALT TO NEW ELECTRICITY PRICE HIKE
The Organised Private Sector (OPSN) has lamented that the new tariff of N225/kwh for Band A electricity customers, may trigger mass closure of businesses.
The operators said that over 65 per cent of private businesses, especially manufacturing sector and SMEs, may be forced to close down due to the high electricity tariff.
Nigerian businesses, represented by the Organised Private Sector of Nigeria (OPSN), are demanding a halt to the recent electricity price hike. They argue for a pause to allow for discussions on how electricity tariffs are set and to ensure transparency in the process.
Key Points from OPSN:
- The new tariffs were implemented without proper consultation with the private sector.
- The dramatic increase harms the competitiveness of Nigerian businesses.
- The hike contradicts previous cost estimates by the Nigerian Electricity Regulatory Commission (NERC).
- The current naira exchange rate is stronger, making the increase even less justifiable.
- The price increase is significant, with a medium-sized company potentially facing a yearly electricity bill of 1.4 billion naira, compared to just 24 million naira in China for a similar firm.
- The rise comes at a time of existing challenges for businesses, including inadequate electricity supply, macroeconomic instability, and infrastructure issues.
OPSN
emphasizesthat the electricity price hike is detrimental in the current economic climate and demands a transparent and collaborative approach to setting electricity tariffs.
https://statisticss.com/2024/04/19/nigerian-busines…icity-price-hike/
Source: Techeconomy
