Tariff increase to worsen economic instability — private sector

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The Organised Private Sector (OPSN), composed of prominent Business Membership Organisations (BMOs), has raised alarm over the recent surge in electricity tariffs for Band A customers, warning of its detrimental impact on Nigeria’s economic stability.

In a joint statement, including voices from the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), and others, the group expressed deep concern that the 200% increase in electricity tariffs would severely harm businesses and exacerbate economic challenges.

The OPSN highlighted discrepancies between the new tariff and the Multi-Year Tariff Order (MYTO) referenced NERC/2023/05, which pegged the cost-reflective tariff at N114.8/Kwh. They argued that the sudden increase to N225/kwh does not align with current exchange rate realities, especially considering the recent appreciation of the naira against the dollar.

The private sector coalition warned of dire consequences, including a surge in unemployment and heightened insecurity, as a result of the tariff hike. They urged for the suspension of the new tariff implementation, advocating for inclusive dialogue among stakeholders to transparently review the tariff determination process and agree upon a fair mechanism for setting electricity tariffs.

Source: Daily Trust

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