250% Tariff Hike: MAN Seeks 50% Discount for Manufacturers

The Nigerian Electricity Regulatory Commission (NERC) recently approved a 250% electricity tariff increase for distribution companies (DisCos).

The Manufacturers Association of Nigeria (MAN) is calling for a downward review, citing the unsustainable burden on manufacturers.

MAN’s Director General, Segun Ajayi-Kadir, stated:

“NERC and DisCos are wrong to increase tariffs by 250%. No manufacturer can survive such a drastic hike. The federal government’s 50% discount for universities and hospitals proves that the increase is excessive.”

MAN is seeking a similar 50% discount for manufacturers, highlighting their significant contributions to:

– Job creation

– Tax revenue

– Export growth

The association is consulting with its counsel and members, who are concerned about the tariff’s impact on their businesses. Some manufacturers are considering shutting down operations due to the unsustainable costs.

Background:

– NERC approved the tariff hike for DisCos.

– The increase affects primarily Band A customers.

– MAN previously took NERC and DisCos to court but lost due to abuse of court process.