Manufacturers seek reversal of electricity tariff increase from 200% to 40%

…solicit dedicated GenCo, DisCo to power Kwara investment hubs

…want extension of forex window to local firms

Investors and manufacturers under the aegis of Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to facilitate the review of alleged 200% increase in electricity tariff to 40% in order to for them to ramp up the production of goods and services, thereby, reducing inflation and stimulating the economy.

Rahamon Jimoh Bioku, the immediate past Chairman of MAN Kwara and Kogi States’ Chapter, who raised the issue in Ilorin, Kwara State while delivering a speech at 10th Annual General Meeting (AGM) of MAN, declared that decreasing production of goods and services as well as gross domestic product was part of economic variables that fuelled inflation and other economic downturn the Country currently faces.

Bioku, equally urged Kwara State Government to boost energy generation and distribution in the State to aid the emerging investment hubs and manufacturers’ survival, saying “a Heavy-Duty Gas Energy Generation and Distribution Plant exclusively for Kwara State Industrialists is needed” to boost productivity in the part of the Country.

“Federal Government should reverse the over 200% increase in the electricity tariff approved for distribution companies (DisCos), and revert to the old rates or at best an increase by only 40% as requested by the DisCos themselves”, he said.

Reacting to the effect of oil subsidy removal on the local manufacturers, Bioku lamented that, “as we endure these bitter pains of subsidy removal and the realities accompanying same, we call on the Government to urgently come to our aid because the bitter removal of subsidy in Nigeria has left manufacturers in unprecedented comatose.

“It is sardonic today to note the countless number of industrial establishments have gone under. The few ones still struggling to operate have required monumental support from the government. But more sadly, the government supports have not been forthcoming to the required level.”

He also tasked the Central Bank Nigeria (CBN) to widen the window of the foreign exchange to local Industries, asking the Federal Government to harmonise taxes and levies at Federal, State and Local Government levels in order for the investors and manufacturers to have the sigh of relief.

Bioku, who acknowledged the Kwara State Government contributions under the leadership of Governor Abdulrahman Abdulrazaq on ease of doing business in the State, listing the good policies such as Kwara business reform plan 2023, the digitization of business registration, the master plan, among others, as economic incentives offered by the State Government, saying that the good policies had started yielding positive results in driving economy.

Also, Francis Meshioye, MAN President, who spoke on the theme of the AGM – “Tackling the Challenges of Manufacturing Sector: A Win-Win for Government and Local Manufacturers”, noted that the theme was apt and timely.

“One of such gestures was displayed recently when the electricity supplies of Companies who belong to the Band A categorization of electricity users in Nigeria were disconnected by IBEDC.

“I call on the State to ensure that this relationship is sustained and deepened. Furthermore, I strongly appeal that infrastructure around the industrial estates be upgraded. We assure you that MAN will continue to partner with your government in the
development of the economy of Kwara State,” he declared.

Governor Abdulrahman Abdulrazaq of Kwara State, who was represented at the programme by Damilola Yusuf Adelodun, Commissioner for Business, Innovation and Technology, affirmed the State Government’s continuous support for Manufacturers Association of Nigeria (MAN) to boost the economy of the State and the Country at large.