. As TUC rejects proposed 65% hike
By Stanley Onyeka, Lagos and Tochukwu Bliss, Abuja
The Manufacturers Association of Nigeria (MAN), yesterday criticized the frequent increase in electricity tariffs, saying it is hindering the performance of the sector and economic growth.
The Director-General, MAN, Segun Ajayi-Kadir, in a statement stressed the importance of electricity in manufacturing, and significantly affects production costs and product prices.
MAN noted that no nation could achieve significant industrialization without ensuring energy security, adding that any increase in tariff will harm the competitiveness of Nigerian products and businesses.
This comes even as the Trade Union Congress of Nigeria (TUC), has rejected the proposed 65% tariff hike.
In a communiqué issued at the end of its first quarter of the 2025 National Administrative Council (NAC) meeting yesterday in Abuja, TUC President Festus Osifo, said the Council “strongly” condemned the proposed 65% increase in electricity tariff.
Addressing journalists after the meeting, Mr, Usifo said: “It is alarming that the government is considering this hike when the previous increment has already inflicted severe hardship on citizens.
“This proposed increase is not only ill-timed but also a deliberate act of economic oppression against Nigerians, who are already struggling under unbearable economic conditions.
“Furthermore, the improved service quality promised during the last tariff hike, particularly for consumers under the so-called “Band A” category, has not been realised.
“Most consumers, regardless of their tariff band, continue to live in perpetual darkness.”
Despite failing to meet demand, there have been continuous tariff increases without a corresponding improvement in supply quality.
MAN’s grouse
Focusing on the impact of the tariff hike, MAN warned that this would worsen production costs, intensify inflationary pressure, and further reduce consumers’ disposable income.
Furthermore, it would increase manufacturers’ unsold inventory, erode profit margins, raise unemployment, and force more private businesses to shut down.
Mr. Ajayi-Kadir recalled that “It was due to the critical role of energy security in Nigeria’s industrial aspirations that the power sector was privatised in 2013. Unfortunately, this privatisation has not delivered the expected results.”
He argued that the power sector is currently struggling because operators lack the technical and financial capacity to ensure optimal performance, despite that Nigeria’s installed electricity capacity hovers around 10,000 megawatts (MW).
He continued: “Despite failing to meet demand, there have been continuous tariff increases without a corresponding improvement in supply quality.
“According to the National Bureau of Statistics, electricity supply was 5,909.83GWh in Q2 2023 but dropped to 5,769.52GWh in Q1 2024 and 5,612.52GWh in Q2 2024.
“This decline followed the implementation of a tariff increase exceeding 230 per cent. This represents a 5.03% year-on-year decrease and a 2.72% quarter-on-quarter decline.”
Mr Ajayi-Kadir noted that MAN has repeatedly called for an increase in electricity supply beyond the average 4,000MW provided daily to over 200 million Nigerians against 30,000MW required to adequately meet the growing demand from businesses and households.
He, therefore, urged the government to review the performance of DisCos following the recent tariff increase and its impact on manufacturing, businesses, and households.
He also admonished the government to critically assess DisCos’ cost-reflective tariff model and audit their investment in distribution infrastructure.
However, the federal government has debunked the 65% increase in tariff, insisting that its focus remains on improving power supply, ensuring targeted subsidies, and expanding metering nationwide.
