Frequent Hike In Electricity Tariff Hurting Nigeria’s Real Sector – MAN 

LAGOS  – The Manufacturers Association of Nigeria (MAN), says the incessant tariff increase in the electricity sector is hindering performance in the manufacturing subsector of the Nigerian economy. 

Drector-General of MAN, Segun Ajayi- Kadir, disclosed this in a statement. 

He said: “Electricity is a critical input in manufacturing processes, and it has significant impact on production cost and prices of products. Therefore, it goes without saying, that incessant increase in electricity tariff in Nigeria is hindering the performance of the sector and growth of the economy.” 

“Incidentally, no nation can attain significant industrial development without energy security, which is timely access to sustainable and cost-effective energy. Sustainable and low-cost energy supply provide incentives for scale production and competitiveness of the industrial sector. 

It was based on the critical importance of energy security in achieving the industrial aspiration of Nigeria, that the Power Sector was privatized in 2013 to improve the scale of energy supply to the nation, particularly the industries.” 

“Unfortunately, this particular privatization has not yielded the desired results. It is widely believed that this is because the operators in the value chain lack the technical and financial capacity to operate and deliver optimally. The installed capacity has been consistently put around 10,000MW and it has not been fully utilized due to the limited capacity of the GenCos and DisCos to generate and distribute adequate electricity supply nationwide.