The Manufacturers’ Association of Nigeria (MAN) has said the 250% increase in electricity tariffs, which its members in Band A are being made to pay, has begun to take its toll on the sector, and therefore become a source of concern for such members.
Raising the concerns at the 52nd Annual General Meeting (AGM) media briefing, held by the association in Lagos, on Monday, its Director General, Segun Ajayi-Kadir stated that the non-sustainability of the new tariff constitutes a major threat to the sector, leaving its over 2,500 members worried about the survival of their businesses.
He expressed the fears of the consequences of such businesses being forced to shut down as a result of the development, and the effects such closure would have on the national economy.
Kadir, therefore, called on the federal government to intervene, the way it had done in the nation’s tertiary institutions by subsidizing a substantial part of the cost for members, since many businesses, he added, would not be able to cope with the present tariff.
“We wouldn’t mind if we are made to pay 100% increase. But hiking electricity tariff by 250% for manufacturers is not just done. It is not sustainable. Many of our members can not afford it. Some are even thinking of shutting down. But you can imagine what would happen if this number of businesses shut down. Definitely,.that would not be in tune with the President’s economic agenda,” he added.
Speaking on the forthcoming AGM of the association, the President of the association, Otunba Francis Meshioye, explained that the three-day event, slated for October 22-24, this year, presents a veritable platform for the association to deepen its advocacy mandate.
One of the highlights of the three day event, he stated, is the Adeola Odutola Lecture, now in its 4th edition, where the imperatives of an intentional development of the manufacturing sector, would be handled by the President & CEO of the Africa Finance Corporation, Mr Samaila Zubairu, expected to be the Guest Speaker at event.
He explained that the choice of the theme ‘The Imperatives of an Intentional Development of the Nigerian Manufacturing Sector’, typifies the association’s resolve to birth a thriving manufacturing sector.
“The theme was couched with a deep reflection on the growth trajectory of the manufacturing sector in Nigeria. The high and rising cost environment continues to shrink profitability and, in many cases threaten the existence of many operators in this critical sector of the economy.
“More worrisome is the fact that the sector that should propel job creation, productivity, and economic growth is enmeshed with series of challenges that constantly limit its contribution to the Gross Domestic Product,” Meshioye stated.
While stressing the need to urgently address the binding constraints that make local products uncompetitive, the MAN boss assured of the association’s commitment, as critical stakeholders in the Nigerian economy, to playing its role of presenting the government with policy inputs and options.
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