The Manufacturers Association of Nigeria has called on the Federal Government to review the performance of electricity distribution companies in light of their investment in distribution infrastructure, following reports of a planned increase in electricity tariffs.
In a statement, the Director-General of MAN, Segun Ajayi-Kadir, called for a review of DisCos as he decried the incessant rise in electricity costs, stating that it is stifling the growth of the manufacturing sector and, by extension, the country’s economy.
Ajayi-Kadir urged the Federal Government to “conduct a study on the impact of the increase on the manufacturing sector in particular and businesses and households in general; sincerely and critically interrogate the so-called cost-reflective tariff template of the DisCos; and audit their level of commitment to investment in distribution infrastructure.”
He maintained that electricity is a critical input in manufacturing processes with a significant impact on production costs and product prices, adding, “The incessant increase in electricity tariffs in Nigeria is hindering the performance of the sector and the growth of the economy.”
