Business

JUST IN: Manufacturers Rejects 40% Electricity Tariff Hike on Mere 4000MW

Published

3 years ago

June 23, 2023

351 Views

The Manufacturers Association of Nigeria (MAN) has rejected the planned 40 percent hike in electricity tariff, which will become effective from July 1, calling on the government to shelve the increase until electricity generation , transmission and supply improves in the country.

The Nigerian Electricity Regulatory Commission (NERC), had said that the current tariff increase is based on the Service Based Tariff, SBT, benchmarked on an exchange rate of N441/$ and inflation of 16.97 per cent.

It argued that since the value of the naira to the dollar now hovers above N700 and current rate of inflation at 22.45 percent, it is necessary to increase tariff to mitigate operators’ cost of operations.
However, MAN, in its reaction, that beyond the present embattling high prices, starting July a 40 percent hike at this time is simply outrageous.
Segun Ajayi-Kadir, the Director-General of MAN, said that the expectation of the manufacturers is that the Federal Government and the NERC will ensure improvement in electricity generation, transmission and distribution that will lead to adequate and reliable electricity supply in the country, rather than increasing the tariff on the mere 4000MW to meet all revenue needs of stakeholders in the electricity supply industry.

” Government should ensure that at least 90 percent of electricity consumers are metered to ensure consumption reflective electricity bill payment, formulate electricity policies that will aid investment in energy industry to increase generation capacities that will usher in large scale production of electricity and ensure effective implementation of the recent Electricity Act (2023) that is aimed at increasing the electricity supply in the country,” he said.

The Association urges NERC to
▪︎ Eradicate outrageous bills by closing the metering gap through the liberalization of ultimate users’ access to effective mass metering;

▪︎Ensure the connection of all consumers to the electricity grid to avoid free riding and unfair charges on the few connected consumers;

▪︎ Work on efforts to increase the electricity supply base in order to distribute the total cost among a high number of consumers at a much lower unit cost;
▪︎ States and private investors should rise up to the challenge by taking advantage of the Electricity Act 2023 to eradicate the energy poverty of their people.

Likely Effects of Tariff Hike On Manufacturing industries
As a matter of fact, a further rise in electricity tariff could lead to the following:

i. Costs of production will soar: Higher electricity tariff will directly increase the cost of production for manufacturers. Already, we have energy constituting between 28-40% in the cost structure of manufacturing industries.
You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery, and chemicals manufacturing.

ii. Profit margins will reduce: A spike in the electricity tariff will erode the profit margin of the manufacturers and reduce their ability to expand operations and create new jobs

iii. High probability of activities paralysis: This is a definite possibility among small and medium-sized enterprises (SMEs) who are unable to accommodate the higher price.

iv. Potential decrease in the revenue collectable by government: The hike in electricity tariff will reduce the manufacturers’ profitability and by extension the quantum of taxes and fees payable to the three tiers of Government. Manufacturers remain the largest income taxpayer in the country. Therefore, in the event of poor income generation due to high costs of production, the government purse will suffer.

v. Manufacturers will ultimately pass on the additional cost to the consumers of their products: This will increase the cost of local made products in the market and complicate the rising inflation rate in the country.

vi. Recession of manufacturing activities: An increase in electricity tariff will reduce the purchasing capability. One of the resulting effects is the fall in demand and recession of manufacturing activities over time.

vii. The sector’s competitiveness will definitely worsen: The high cost of the products will make locally produced items less competitive, when compared with imported alternatives.
This is also true of exports, as Nigeria products may find it more difficult to penetrate foreign markets. Such a move will restrict our exports earnings because it will be impossible to compete with counterparts in the global trading environment.

viii. High probability of outward investment. Some manufacturing industries may consider shifting production to other economies with lower electricity tariffs and guaranteed availability.

Related Topics:Electricity Tariff Hike Manufacturers

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Dangote proposes to build refineries in East Africa if …

Dangote made the pledge at the infrastructure summit – the Africa We Build Summit 2026 – on Thursday in Nairobi, Kenya.

Published

8 hours ago

April 24, 2026

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Africa’s leading industrialist and President of the Dangote Group, Aliko Dangote, has said the refinery in Lagos can be replicated in East Africa with the right support.

Dangote made the pledge at the infrastructure summit – the Africa We Build Summit 2026 – on Thursday in Nairobi, Kenya.

The proposed refinery Dangote was referring to would be built in Tanga, Tanzania. A pipeline would be linked to Kenya’s Mombasa port to serve the entire East African region. Kenya, Uganda, and neighbouring eastern African countries would benefit

Dangote said: “I can give commitment to the two presidents that were here; if they will support the refinery, we’ll build the identical one that we have in Nigeria – 650,000 barrels per day.”

The presidents he was referring to are Kenya’s President William Ruto and Uganda’s President Yoweri Museveni.

The proposed refinery Dangote was referring to would be built in Tanga, Tanzania. A pipeline would be linked to Kenya’s Mombasa port to serve the entire East African region. Kenya, Uganda, and neighbouring eastern African countries would benefit.

On the readiness, Dangote said: “There is nothing that can stop it. We have done the one in Nigeria and that’s why we are taking the bold move which was started already. Piling has started, while building to a scale – 1.4 million barrels per day will give us the largest refinery – world number two.

“It is 10% of entire United States of America’s refining capacity.
And this is coming with lot of, you know, petrochemicals. If we look at it today in Nigeria, if not because we have polypropylene, all the plants, all businesses would collapse.

“Cement is packed in polypropylene, flour, rice, grains, everything. So nothing… and the cost now has shot up between just 45 days – from $900 to 3$3,000. There is no way you can afford that. You can’t afford it.

“So, that is why we must learn how to build self-sufficiency. Right now, we have big financial institutions that are very hungry for big ticket items. And we’re also big in terms of our own vision.

“So, it is possible. Africans can do it. Let us not be scared. No. Let us not come and be convinced, as I know somebody needs to carry our own material to go and produce and bring the items here.

“I must really thank the President of Uganda for taking this bold move: stopping the export.

They will be forced. They would come (and) produce. Why do you have to take your material (away), then you’ll bring it back? We have educated people. We have big financial institutions. It’s not like before. Things have changed.”

Business

CBN increases ATM card issuance fee by 50% to N1,500

CBN disclosed this in its Exposure draft of the Guide to Charges by Banks and Other Financial Institutions, OFIs, in Nigeria 2026.

Published

8 hours ago

April 24, 2026

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30 Views

The Central Bank of Nigeria, CBN, has increased the fee for issuance and replacement of Automated Terminal Machine (ATM) debit/ credit cards by 50 percent to N1,500 from N1,000.

The apex bank also scrapped the N50 monthly charges for Naira Debit/ Credit Card maintenance which usually includes 7.5 percent Value Added Tax but said customers with Foreign Currency denominated debit/credit cards will continue to pay maintenance fee of $10 per annum.

CBN disclosed this in its Exposure draft of the Guide to Charges by Banks and Other Financial Institutions, OFIs, in Nigeria 2026.

The apex bank also reiterated among other things that the cost of ATM transactions on Merchants PoS will be borne by the Merchant and not the customers.

CBN said: “ATM card Issuance/Replacement charges for regular/basic debit/credit card is N1, 500. “Charges for Premium Debit/Credit/Hybrid Card are negotiable Virtual cards at no charge. “Merchant Service Charge (MSC) (charge to be borne by the merchant).

There shall be no charge to the cardholder paying the merchant.

“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the MSC shall be borne by the merchant.

The MSC payable by a merchant (0.5 percent) subject to a cap of N10,000 shall be the same irrespective of the technology or payment methods.”

In a circular to Banks, Other Financial Institutions and the Public signed by the Director Financial Policy and Regulation Department, CBN, Dr. Rita Sike, CBN said that the review of the guide to charges by banks and OFIs and non bank Financial Institutions was to fulfill its mandate to promote a safe and sound financial system in Nigeria accelerate the adoption of innovative financial services, financial inclusion and micropayments/transaction.

(Vanguard)

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FG Launches Energise Commercialisation Now (ECoN) To Boost Industrial Productivity

The Minister of Innovation, Science and Technology, Dr. Kingsley Tochukwu-Udeh, described ECoN as a national framework designed to bridge the gap between research and the marketplace.

Published

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April 24, 2026

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• Kano ECoN launch by First Lady, Senator Oluremi Tinubu, Thursday 23,2026.

The federal government has launched the Energise Commercialisation Now (ECoN) an initiative of the Ministry of Innovation, Science and Technology.

Nigeria’s First Lady, Senator Oluremi Tinubu, launched the programme in Kano, yesterday, and calling for a shift from ideas to industrial productivity.

The First Lady said that Nigeria must move beyond generating ideas to building industries that create jobs and drive economic growth.

She noted that although innovative concepts continue to emerge from universities, technology hubs and young entrepreneurs, many do not translate into real-world solutions.

“This initiative represents a decisive effort to close that gap by creating an environment where ideas can grow, attract support and scale into real solutions,” she said.

The Minister of Innovation, Science and Technology, Dr. Kingsley Tochukwu-Udeh, described ECoN as a national framework designed to bridge the gap between research and the marketplace.

He said that the initiative aims to transform research outputs into revenue-generating ventures while promoting inclusive economic growth.