By Busari Kabirat
The Organised Private Sector of Nigeria (OPSN), consisting the top Business Membership Organisations (BMOs) representing millons of business owners in Nigeria, has came out to lament over the recent development in hike of 200% electricity tariff which was announced by the Nigerian Electricity Regulatory Commission (NERC).
The OPSN, which is consisted of NECA, NASSI, MAN, NACCIMA and NASME has come together to issue a statement concerning the threat such development will be over business survival in Nigeria as many people will not be able to afford the sudden increment in electricity tariffs.
They requested dialogue amongst the stakeholders to look into the procedure of determining the electricity tariffs and establish a transparency method in their charges, highlighting the negative impact of the tariff hike on the competitiveness of Nigerian products and services, over the imported ones when electricity becomes an issue.
They OPSN pointed out that the increase does not align with the MYTO Order and fails to consider the current exchange rate reality, which has seen the Naira appreciate significantly against the dollar.
They revealed that Nigeria now ranks third in terms of high electricity costs compared with other countries like the USA, UK, Germany, and China.
They warned that the excessive tariff hike, coupled with macroeconomic instability and infrastructure deficits, could lead to the closure of over 65% of private businesses, particularly in the manufacturing sector and small and medium enterprises (SMEs).
They urged the government to reconsider the tariff hike, as it would have negative trickle-down effects, worsen inflation, reduce disposable income, and exacerbate unemployment and insecurity in the country.
They acknowledged the government’s efforts to stabilize the economy and enhance human capital development but stressed the need for policies that support business survival and economic growth.
They restated its call for suspension of the electricity tariff hike and emphasized the importance of collaborative efforts to address the challenges facing the private sector in Nigeria.
