Business

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

Published

3 years ago

June 23, 2023

289 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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Business

TMBC Business Publisher says MPC rate cut is timely, appropriate MPC

Published

20 hours ago

March 2, 2026

Charles Flames

17 Views

By Rukayat Moisemhe

The Publisher of The TMBC Business, Mr Tony Monye, has commended the Monetary Policy Committee (MPC) of the Central Bank of Nigeria for reducing the Monetary Policy Rate by 50 basis points to 26.5 per cent from 27.0 per cent.

Monye made this known in Lagos on Sunday in an interview with the News Agency of Nigeria (NAN).

He said that the committee’s decision to begin a gradual monetary loosening was timely and appropriate, given the improving macroeconomic conditions.

NAN reports that the MPC, at its latest meeting, lowered the benchmark interest rate by 0.50 percentage points, citing sustained dis-inflation and improving economic fundamentals.

Monye described the move as a cautious and responsive approach needed to consolidate recent gains in price stability.

“I doubt there are sane economic players out there that aren’t applauding the members of the MPC.“The system needs this sort of decision at this time. So, members of the committee should be commended,” he said.

Monye noted that recent policy measures by government had helped align key price indicators in the economy, including inflation, exchange rate and interest rate, towards planned targets.

According to him, inflation has maintained a steady month-on-month decline, while the naira has continued to strengthen in the foreign exchange market.

He added that interest rates had remained relatively stable, creating a more predictable environment for investors and other economic agents.

“With policies, appropriateness should be accompanied by right timing buoyed by the right level of implementation,” Monye said, in support of the MPC’s gradual easing stance.

He expressed optimism that the measured rate cut would support investment and economic expansion without undermining price stability.

NAN further reports that The TMBC Business, a monthly non-street journal, aimed at select C-suite executives and online readers, will celebrate its second anniversary in April.

Monye said the anniversary would be commemorated with a series of programmes, including a seminar to be anchored by seasoned experts in the corporate communications community.

Business

Iran-US-Israel war Drives Dangote Refinery’s PMS to N874

Several depot owners suspended PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator was quoted as saying.

Published

23 hours ago

March 2, 2026

OCHEFA

16 Views

Dangote Petroleum Refinery has reviewed the price of its Premium Motor Spirit (PMS) gantry price by N100, bringing the ex-depot rate to N874 per litre from the previous N774, as international crude oil prices surged past $80 per barrel due to the ongoing U.S – Israeli war against Iran.

A senior refinery official who confirmed the adjustment on Monday, said that the price has been reviewed.

” The new gantry price is now N874 per litre, up from N774. The revision became necessary due to changes in global crude fundamentals and replacement costs,” the official said.

Checks on petroleumprice.ng indicate that the new pricing has already been implemented, signaling a shift in downstream benchmarks that will likely affect petrol retail prices across the country.

The price hike followed the refinery’s suspension of petrol loading operations, effective midnight on March 2, 2026.

Industry data showed that PMS loading and issuance of proforma invoices were temporarily halted, although the suspension applied only to petrol, while Automotive Gas Oil (diesel) continued to load uninterrupted.

The refinery’s move triggered a ripple effect across Nigeria’s downstream sector, with several private depot owners halting petrol sales during the trading day.

“Several depot owners suspended PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator was quoted as saying.

Business

Global Links and Services Ltd adds Namibia to its Tourism Packages

Tony Onwuchekwa, the company’s Group Director of Communications, who disclosed this, and advocates for policy changes to ease intra-African travel.

Published

3 days ago

February 28, 2026

OCHEFA

65 Views

• Tony Onwuchekwa, Group Director of Communications

Global Links and Services Ltd (operating as Global Links Travel & Tours), a fully licensed IATA Travel Agency based in Nigeria, says that it’s poised to integrate Namibia into its tours and pilgrimage offerings.

Tony Onwuchekwa, the company’s Group Director of Communications, who disclosed this, and advocates for policy changes to ease intra-African travel.

Onwuchekwa said that the motivation to add Namibia to its travel destinations package was ignited by it’s participation in the just ended Namibia Tourism Board (NTB) and South African Airways (SAA) B2B Stakeholders Meeting in Windhoek.

He emphasised that with over 20 years of experience in crafting seamless travel experiences across Nigeria and beyond, Global Links and Services Ltd is poised to advance intra-Africa tourism, experiential travel, and investment opportunities in Namibia, aligning with its mission to transform travel dreams into reality through expertly curated itineraries, flights, tours, hotels, transfers, study abroad services, and faith-based pilgrimages.

According to him, the company has gained firsthand insights to develop authentic, budget-friendly packages that highlight Namibia’s cultural heritage, wildlife, and MICE (Meetings, Incentives, Conferences, Exhibitions) potential.

“Global Links is committed to bridging Africa’s tourism gaps through strategic collaborations and immersive experiences,” said Tony Onwuchekwa.

“This event aligns perfectly with our vision of linking clients to the world’s wonders, and going forward, we’ll leverage our expertise in promoting African destinations to position Namibia as a must-visit hub for bleisure and adventure travellers,” he said.