…Says businesses collapse imminent
Nigerians, including several businesses may experience financial implosion if reports of a proposed 40% electricity tariff increase reflect the percentage being circulated and reported in the media.
Stakeholders and other concerned Nigerians have warned of possible socio-economic consequences of such a decision.
Recall that earlier, the Director-General of the Manufacturers Association of Nigeria, (MAN), Segun Ajayi-Kadir, had urged the federal government to ensure that at least 90 percent of electricity consumers are metered to enhance consumption reflective electricity bill payment., warning that cost of products produced in the country would go up and this will increase the prices of goods and services should the government approve upward adjustment in electricity tariff.
Speaking on the planned tariff hike, chief executive officer, CEO of the ‘Center For The Promotion Of Private Enterprise’, (CPPE), Dr. Muda Yusuf, said that apart from its wrong timing, the 40 percent proposal is exploitative and will further weaken the purchasing power of the citizens and negatively impact on small business operators.
He called for its suspension as operators in the sector are using the monopoly structure in the industry to unbalance the already precarious socio-economic situation of the country.
Also, speaking on the proposal, president of the Nigeria Consumer Protection Network (NCPN), Kunle Kola Olubiyo, raised serious concerns saying the exercise would throw consumers into further hardship as people have not recovered from the impact of petrol subsidy withdrawal. He said the proposal would see payments rise between N150 to N300 per kilowatt hour.
The NCPN president, in his analysis of the proposed hike said that at the moment, customers in Band C that presently pay N40 per kilowatts hour may be increased to about N100 per kilowatts hour, while Band A that is presently at about N56 per kilowatts hour may be jerked up to about N150 per kilowatts hour.
On his part, CEO, Momas Electricity Meters Manufacturing Company Limited, Engr. Kola Balogun, said that if raising tariffs will drive investment recovery and generate jobs it should be encouraged but it is important that the power sector downstream is properly balanced.
According to him, liberalising customer metering would bring immense benefits to the NESI and also to electricity customers who suffer the twin effects of poor services and high estimated billing.
Also, commenting on the situation, executive director of the Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, said the right thing expected of government to do before this increase of electricity tariff is to ensure that strengthening of the national grid so as to adequately supplied electricity in the country.
Musa said government should redirect its policy towards completing abandoned projects, noting, “We cannot be initiating projects and after spending huge amount of money and then we abandon those projects,
“I think government need to make sure that it takes stock of all the projects related to electricity and energy in this country, and then study them carefully to see viability of those projects before embarking on just increasing the tariff”, he stated.
