‘How electricity tariff hike’ll stifle businesses’

The Abuja Chamber of Commerce and Industry (ACCI) has expressed concern over the recent increase in electricity tariffs, saying it could negatively impact on the ease of doing business in Nigeria.

The President of ACCI, Mr Emeka Obegolu, told the News Agency of Nigeria (NAN) in Abuja on Saturday that the hike would significantly impact businesses across various sectors of the economy.

Obegolu acknowledged the various challenges already faced by entrepreneurs and investors and opined that the Small and Medium Enterprises (SMEs), which are crucial to the economy, would be greatly hit by the hike in tariff.

“The ease of doing business is a critical factor for fostering economic growth, attracting investments, and creating job opportunities.

“Regrettably, the increase in electricity tariffs can hinder these efforts by imposing additional financial burdens on businesses, especially SMEs, which are the backbone of our economy,” he said.

Highlighting the importance of electricity in businesses, Obegolu said that any disruptions or cost increases associated with electricity supply could lead to higher operational expenses.

The president said it would hinder businesses’ ability to invest in innovation and expansion and impede their competitiveness in both domestic and international markets.

He also expressed concern that the tariff hike, combined with other economic challenges such as the removal of fuel subsidy and foreign exchange unification, could further compound difficulties faced by businesses.

Obegolu urged the relevant authorities to reconsider the tariff increase and explore alternative solutions that prioritise the needs of businesses. (NAN)