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MAN condemns electricity tariff increase

By on March 10, 2015

The Chairperson, Abuja Council of the Manufacturers Association of Nigeria, Dr. Wosilat Shittu, has condemned the withdrawal of the Multi Year Tariff Order by the Nigerian Electricity Regulatory Commission.

This, she said, would have adverse effect on industries in the country and urged the commission to rescind the decision.

Shittu, who stated this in a chat with journalists in Abuja, noted that manufacturers were already facing a lot of challenges as a result of unfavourable business environment in the country.

She said, “The cost of doing business in the country is high, especially with the volatility in the exchange rate of the naira and when you now add almost a 100 per cent increase in electricity tariff, you will agree with me that many Small and Medium-Scale Enterprises that cannot pass on the additional cost to consumers are bound to close shop.

‘‘If the government recognises that manufacturers are the engine room of economic growth and employment, it should do more to encourage them; you cannot operate in an environment where basic infrastructural facilities that support the manufacturing sector are lacking, and the government, rather than address the problem, is slamming more indirect taxes on manufacturers.”

She bemoaned the current billing system by the electricity distribution companies, which she said was extortionist.

“In Abuja, many of my colleagues are already weighed down by the estimated billing method adopted by the electricity distribution company. They have deliberately refused to provide meters and at the end of the day, you actually find out that you are paying for darkness, this is extortion because whether there is light or not, you must pay,” she said.

The industrialist advised the government to as a matter of urgency rescind the withdrawal of the MYTO and revert to the earlier agreed date of 2017.

“Government should be consistent with its policies. What was earlier agreed was that the Multi Year Tariff Order should subsist until 2017; withdrawing it prematurely and unilaterally without any consultation with stakeholders is counterproductive and inimical to the Nigerian economy as a whole,” Shittu added.

 

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