Emmanuel OchayiThe Abuja Chamber of Commerce and Industry (ACCI) has expressed apprehensions over the impact of the new electricity tariff increase on the long-term sustainability of businesses across various sectors.
Speaking in Abuja, ACCI President Mr. Emeka Obegolu voiced worries about the adverse effects the tariff hike could have on businesses.
He emphasized the challenges already faced by entrepreneurs and investors and highlighted the potential disproportionate impact on Small and Medium Enterprises (SMEs), crucial contributors to the economy.
“Many enterprises are already struggling with reduced demand, supply chain disruptions, and financial constraints,” Mr. Obegolu stated. “The burden of higher electricity tariffs exacerbates their challenges and threatens their long-term viability.”
As advocates for the business community, ACCI urged relevant authorities to reconsider the tariff hike and seek alternative solutions that prioritize business needs and support the ease of doing business.
“It is vital to strike a balance between ensuring a sustainable energy sector and mitigating the adverse effects of tariff hikes on businesses, particularly during these trying times,” Mr. Obegolu emphasized.
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Highlighting the potential consequences of the tariff increase, Mr. Obegolu expressed concerns that it would impede businesses’ ability to invest in innovation and growth, affecting their competitiveness in both local and global markets.
He also cited worries that the tariff hike, coupled with other economic challenges such as the removal of fuel subsidies and the stabilization of foreign exchange rates, could further compound businesses’ difficulties.
The recent tariff hike by the Nigerian Electricity Regulatory Commission (NERC) primarily affects Band A consumers, with an increase of over 300% from approximately N66 per KWh to N225 per KWh. NERC clarified that the hike would only impact about 17% of total electricity consumers in the country who receive up to 20 hours of electricity daily.
With businesses already grappling with numerous challenges, the sharp rise in electricity tariffs adds another layer of concern. As stakeholders call for a reevaluation of the decision, the focus remains on finding solutions that balance the needs of the energy sector with the sustainability of businesses in Nigeria.
