OPS to take position on action

 Chikodi Okereocha

THE Manufacturers Association of Nigeria (MAN) said the commencement of the implementation of the new electricity tariff by Electricity Distribution Companies (DisCos) as announced by the Nigerian Electricity Regulatory Commission (NERC) will push up manufacturers’ cost of production.

Speaking with The Nation, MAN Acting Director General Mr. Ambrose Oruche said with electricity expenses currently constituting, on the average, about 40 per cent of total cost of production, the latest tariff hike will further increase manufacturers’ cost of production.

“It (electricity tariff increase) is a blow on the manufacturing sector, especially with the crippling effects of the COVID-19 pandemic and the prevailing harsh operating environment,” he told The Nation.

Oruche said the position of MAN with regards to any increase in electricity tariff remains the same, which is that there should not be any increase in tariff unless there is steady electricity supply to the industrial sector in particular and the country generally.

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He stated that although, there was a stakeholder forum on the planned increase before the outbreak of COVID-19, MAN had hoped that the increase in electricity tariff will be implemented sometime in the first quarter of next year.

The MAN boss, however, said with the surprise  implementation of the tariff increase, OPS members will meet to take a common position on the matter.

The OPS comprises MAN, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers Consultative Association (NECA), Nigerian Association of Small and Medium Enterprises (NASME), and Nigerian Association of Small Scale Industrialists (NASSI).